Govt Mandates Pension Choice Submission for NPS Employees

In a move to streamline the pension options for Central Government employees covered under the National Pension System (NPS), the Ministry of Personnel, Public Grievances, and Pensions has issued an Office Memorandum (OM) emphasizing the need for strict compliance with Rule 10 of the Central Civil Services (Implementation of NPS) Rules, 2021.

The OM directs all Ministries and Departments to ensure that employees exercise their choice of pension scheme promptly. Here’s everything government employees and departments need to know about the submission requirements.

What’s Required Under Rule 10?

The government has outlined a clear set of instructions under Rule 10 of the Central Civil Services (Implementation of National Pension System) Rules, 2021. These include:

Pension Scheme Option: Every Central Government employee covered under NPS is required to make a choice at the time of joining, either to avail benefits under the National Pension System or to opt for the traditional Central Civil Service (Pension) Rules.
Family Details Submission: In addition to the pension scheme selection (submitted via Form 1), employees are mandated to submit family details using Form 2 to their Head of Office.

The memorandum emphasizes that these options are crucial for cases involving death during service, retirement on invalidation, or boarding out due to disablement.

Action Required by Government Servants

All NPS-covered employees, including those currently in service, are required to:

Submit Pension Scheme Option in Form 1: Indicate their preference between the National Pension System and the old pension scheme for future benefits.
Provide Family Details in Form 2: Ensure that family information is recorded to facilitate benefits in the event of death or disablement.

Departments Urged to Ensure Compliance

The OM highlights that despite previous communications, compliance remains low. Ministries and Departments are again requested to take immediate steps to ensure that all relevant employees complete and submit their forms.

Why This Matters

The government has noticed that many employees have not yet submitted the required information despite multiple reminders. This lack of compliance could impact the seamless processing of benefits for employees and their families in critical situations.

To address this, the government’s reminder underscores the necessity of strict compliance with these statutory provisions, with Heads of Offices bearing the responsibility for enforcing this rule.

Key Takeaways for NPS-Covered Employees and Departments

Mandatory Forms: Form 1 (pension choice) and Form 2 (family details) are both essential submissions for NPS-covered employees.
For All Employees: The requirement applies not only to new joiners but also to current employees who may not have completed these submissions.
Strict Compliance Needed: Ministries and Departments must ensure that employees are aware of and comply with these requirements.

The reminder serves as a final call to streamline pension benefits for Central Government employees, with the government prioritizing the welfare of employees and their families through proper documentation and planning.

This renewed focus on compliance aims to reduce delays and ensure that government employees’ choices are well-documented, providing clarity and security for themselves and their families in unforeseen circumstances.