Option To Switch From NPS To OPS: Who Can Opt For This?

The National Pension System (NPS) replaced the Old Pension Scheme (OPS) on January 1, 2004. Since that date, it has been mandatory for all central government employees to enroll in the NPS. However, under certain circumstances, these employees have the option to revert to the OPS.

The Department of Personnel and Training (DoPT) issued an office order (OM) in this regard on May 9, 2025, and brought members of All India Services under its purview, which were earlier excluded for applying the provisions under rule 10 of the Central Civil Services (Implementation of National Pension System) Rules, 2021.

What Is Rule 10 Of The CCS (Implementation Of NPS) Rules, 2021?

“Rule 10 of these rules deals with the option to be exercised by every Central Government employee covered under the National Pension System for availing benefits under the 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”, reads the OM of the Ministry of Personnel, Public Grievance, and Pensions, dated October 26, 2022.

The rule allows central government civil employees to switch from NPS to OPS in case of death during service or disability resulting in discharge from service.

Note that only civil employees have this option, which they need to confirm by filing Form 1, at the time of joining the service.

According to the OM dated May 9, 2025, “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 (NPS) shall, at the time of joining Government service, exercise an option in Form 1 for availing benefits under the NPS or under the CCS (Pension) Rules or the CCS (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 NPS, shall also exercise such an option. The Department of Pension and Pensioners’ Welfare vide O.M. No.57/03/2022-P&PW(B)/8361 dated 26.10.2022 has issued instructions for implementation of rule 10 of the CCS (Implementation of NPS) Rules, 2021.”

All India Services (AIS), which includes IAS, IPS, and IFS services, is specifically excluded from benefitting from Rule 10.

Here is the list of all the services not covered under this rule of the CCS (Implementation of NPS) Rules, 2021.

• Railway servants

• Persons in casual and daily rated employment

• Persons paid from contingencies

• Members of the All India Services

• Persons recruited for services in diplomatic, consular, or any other Indian establishments in foreign countries

• Contractual employees

• Persons whose terms and conditions of service are regulated under the provisions of the constitution or any other law for the time being in force

• Persons to whom the Central Civil Services (Pension) Rules, 1972 apply by any special or general order issued by the Government

However, with the issuance of the latest OM, AIS members are also covered under Rule 10, until All India Services (Implementation of National Pension System) Rules are finalised for them.

According to the OM, “It has been decided to make the provisions of the aforesaid Office Memorandum (OM dated October 26, 2022) of Department of Pension and Pensioners’ Welfare applicable, mutatis-mutandis, to the members of All India Services covered under the National Pension System, till the finalisation of All India Services (Implementation of National Pension System) Rules.”

How To Exercise The NPS Or OPS Option?

Form 1: Under Rule 10, employees are required to fill up ‘Form 1’ at the time of joining service. They are required to select one of the options for availing benefits in case of disability or death. These can either be:

• Pension under the NPS; or

• Pension under the Central Civil Service (Pension) Rules or the Central Civil Service (Extraordinary Pension) Rules

Form 2: This form is to be used in case of any change in the size of the family, due to marriage, divorce, children, etc. Employees need to inform the department from time to time if there is any such change.

In case an employee has not exercised the option and dies or discharged from service due to disability before completing 15 years in service or within three years of notification of these rules, OPS rules will be followed. For the other cases, where option was not filled on Form 1, NPS rules will apply.

After issuance of the latest OM, members of All India Services become eligible to select OPS or NPS for pension in case of death and disability.