Centre extends Old Pension Scheme (OPS) benefit to compassionate ground appointees: Application date to decide eligibility; who will benefit?

The central government has extended Old Pension Scheme (OPS) benefit to compassionate ground appointees who had submitted their job application before January 1, 2004, but were appointed after this date.

It means compassionate ground appointees who had applied for their compassionate appointment on or before December 31, 2003, but got their appointment letters after that will be given the option of the OPS.

The Department of Pension and Pensioners' Welfare (DoPWW) said in its order, "After inter-ministerial consultation and examination in consultation with the Department of Expenditure and DoPT, it has been decided that the date of application for compassionate appointment shall be considered as the crucial date for compassionate appointments provided that the applicants were eligible to be considered for appointment at the time of their application.”


The order further says, “The family member who is eligible for being considered for appointment and had applied for compassionate appointment on or before December 31, 2003, shall be considered under CCS (Pension) Rules, 2021, by the concerned ministries/departments.”

The DoPPW said that the decision has been taken after a proposal was received for the consideration of employees appointed on compassionate grounds for inclusion under the OPS as per an official memorandum March 3, 2023.

On March 3, 2023, the central government extended the option of the OPS to its employees who had applied for their job on or before January 1, 2004, but got their appointment letter on or after January 1, 2004. The 2023 government order, however, didn’t extend the same option to compassionate ground appointees who met similar criteria. However, with the current order, such appointees will now have the option of the OPS.

The DoPWW says the demand for OPS for compassionate ground appointees had also been raised by National Council – Joint Consultative Machinery (NC-JCM) in its meeting in February 2026.

The central government launched National Pension System (NPS) for its employees who joined their job on or after January 1, 2004. With the launch of the NPS, Centre ended the option of the OPS for all its employees excluding the Armed Forces.

However, later in a court decision, it was decided that the option of the OPS will also be extended to those employees who had applied for their job before January 1, 2004, but got their appointment letters on or after January 1, 2004.

What is OPS?

The Old Pension Scheme is a traditional government-funded retirement plan, where eligible pensioners get a fixed monthly pension. The pension is usually equal to 50% of the last drawn basic pay. Dearness Relief (DR) is added separately to the basic pension.

What is NPS (National Pension System)?

The National Pension System (NPS) is a mandatory, market-linked defined contribution scheme for central and most state government employees who joined service on or after January 1, 2004.

Will the government restore the Old Pension Scheme (OPS) for central government employees covered under the NPS or the UPS?

Minister of State for Finance Pankaj Chaudhary had said in the Parliament that the government is not considering any proposal to restore OPS for central government employees who are covered under the NPS or the UPS.