In a major announcement, the government has said that officers of All India Services (AIS) may have an option to avail benefits under Old Pension Scheme (OPS) in specific cases. Now if an officer suffers untimely death during service or faces disability due to any serious illness or accident, then his family will get the benefit of OPS.

The central government has issued a new order announcing a one-time option to all IAS, IPS and IFS officers coming under the National Pension System (NPS) to choose OPS in this situation. This decision is being considered a big initiative towards providing financial security to their families.

What is special in the order

The Ministry of Personnel, Public Grievances and Pensions has said in an order issued on May 9 that the officers who have joined the service under NPS will have to give an option at the time of appointment whether they want to remain in NPS or take advantage of OPS in such an unfortunate situation (death or disability).

Officers who are already in service and come under the purview of NPS will also have to give this option as soon as possible.

“Every member of service covered under the National Pension System shall, at the time of joining service, exercise an option in Form 1 for availing benefits under the National Pension System or under the All India Services (Death-cum-Retirement Benefits) Rules, 1958 or the Central Civil Services (Extraordinary Pension) Rules, in the event of his death or boarding out on account of disablement or retirement on invalidation. The members of service, who are already in Government service and are covered by the National Pension System, shall also exercise such option as soon as possible after the issuance of these instructions,” the order said.

Also read: NPS vs UPS: How much investment does a govt employee have to make to get Rs 1 lakh monthly pension?

How to get the benefit of OPS

The officer will have to give this option to the head of his department or any authorized officer in Form 1, which will be verified and recorded in the service book.

Also, he will have to give information about his family in Form 2 and will have to inform the department from time to time about any change in the family (such as marriage of a child or birth of a new child).

This option can be changed many times during the service.

If an officer retires due to disability or ill health during service, then at that time also there will be a chance to change the option.

If no option is given and the officer is not in a position to give an option in such a situation, then the benefit of OPS will be available by default, provided the service period is less than 15 years or this situation arises within 3 years of the issuance of this order.

Relief for families

If the officer dies and he did not give any option, then in such a situation also his family will get the benefit of OPS by default, provided the above conditions are met.

However, if there is no eligible member in the family who is entitled to get pension under OPS, then the pension will be given under the rules of NPS.

Also read: UPS vs NPS vs OPS: Which is more suitable for your retirement?

Why is this decision special

This decision will provide great relief to those families whose members lose their lives while serving in AIS or are not in a position to work due to an accident. For a long time, there was concern about NPS that it does not have as much security as OPS. Now the government has given a strong option of protection for such unforeseen situations through this lump sum option.