Terminal Benefits under NPS or Old Pension ? Why Government Employees in NPS Must Decide with Option Form 1 Now ?

Exercise Option Form 1 to decide Terminal Benefits under NPS or Old Pension in the event of Death

As per Rule 10 of the Central Civil Services (Implementation of National Pension System) Rules, 2021:

• Every Government servant under the National Pension System (NPS) must choose an option at the time of joining the service.
• This option, exercised in Form 1, allows the employee to select benefits either under the National Pension System, Central Civil Service (Pension) Rules, or Central Civil Service (Extraordinary Pension) Rules.
• The selected benefit applies in the event of death, retirement due to invalidation, or boarding out due to disablement.
• Government employees who are already in service and fall under the NPS must also complete Form 1 to exercise their option.
• In addition to Form 1, every Government servant is required to submit details of their family in Form 2 to their respective Head of Office.
• The Department of Pension, through an Office Memorandum dated 26.10.2022, instructed all Ministries and Departments to collect this information from all Central Government employees under the NPS.

No. 57/03/2022-P&PW(B)/8361(9)
Government of India.
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan, Khan Market,
New Delhi, Dated the 25th October, 2024

OFFICE MEMORANDUM

Subject: Options under rule 10 of the Central Civil Services (Implementation of National Pension System) Rules, 2021 from Central Government employees covered under the National Pension System -reg.

The undersigned is directed to say that Rule 10 of the Central Civil Services (Implementation of National Pension System) Rules, 2021 provides for option to be exercised by every Central Government employee covered under National Pension System for availing benefits under National Pension System or old pension scheme in the event of death of Government servant during service or his discharge on the ground of invalidation or disablement.

2.In accordance with rule 10 of the Central Civil Services (Implementation of National Pension System) Rules, 2021, every Government servant covered under the National Pension System shall, at the time of joining Government service, exercise an option in Form 1 for availing benefits under the National Pension System or under the Central Civil Service (Pension) Rules or the Central Civil Service (Extraordinary Pension) Rules in the event of his death or boarding out on account of disablement or retirement on invalidation. Government servants, who are already in Government service and are covered by the National Pension System, shall also exercise such option.

3.Every Government servant shall, along with the option in Form 1, also submit details of family in Form 2 to the Head of Office.

4. Further, this Department vide OM of even number dated 26.10.2022 had requested all Ministries / Departments to obtain above information from all Central Government employees covered under NPS.

5.Even though these statutory provisions are being repeatedly communicated to Ministries / Departments, it is noticed that the options Form-1 and details of family in Form – 2 of the CCS(Implementation of NPS) Rules, 2021 have not been obtained from all Central Government employees covered under NPS.

6.All Ministries/Departments are, therefore, again requested to bring these provisions to the notice of Head of Offices for strict compliance.

(S. Chakrabarti)
Under Secretary to the Govt. of India

To
All Ministries/Departments/Organisations,
(As per standard list)

View the Order pdf