New Delhi
In a significant relief for railway employees, the government has extended the deadline for switching from the National Pension System (NPS) to the Old Pension Scheme (OPS). Employees who choose to opt for OPS will now also be eligible for gratuity benefits, similar to what is offered under the OPS, upon their retirement. This move is expected to benefit a large number of central government employees, especially in the Indian Railways.
Last Date
Previously, the last date to submit the option for switching from NPS to OPS was set for June 30. However, understanding the importance of this decision and the demand for more time, the authorities have extended the deadline by three months, making the new cut-off date September 30. This gives eligible employees additional time to assess the implications of the switch and make an informed decision.
The change is particularly relevant for those government employees who joined service between January 1, 2004, and December 31, 2003, but whose appointments were finalized after the cut-off date due to procedural delays. The Department of Personnel and Training (DoPT) had earlier allowed such employees to switch to OPS, provided they fulfill the eligibility conditions.
About Gratuity
Gratuity is a one-time financial benefit given to employees upon retirement, resignation after five years of continuous service, or death. Under OPS, it has always been a part of the retirement benefits package. However, employees under the NPS were previously not entitled to gratuity in the same way. With this recent development, those switching to OPS will now also receive this important benefit, ensuring greater financial security post-retirement.
This decision has been welcomed by employee unions and staff associations across the country. Many had been raising concerns for a long time regarding the lack of post-retirement benefits under NPS and had demanded a return to OPS. The move is seen as a positive step toward addressing those concerns and providing a more secure future for employees.
It is advised that all eligible railway employees carefully review the terms and conditions before submitting their application for the switch. Since this option may not be available again in the future, employees must use this extended deadline wisely. Applications must be submitted before September 30, 2025, to avail the benefits under the revised rule.
This development marks a crucial shift in pension policy, offering a better safety net for government employees and acknowledging their long-term service to the nation.
