In a significant move, the Uttar Pradesh (UP) government has allowed police employees to choose the Old Pension Scheme (OPS). This decision comes after police personnel voiced their demands to bring back the OPS. However, there’s a key point: this option is only available for those who joined the police force before March 28, 2005.
Key Dates and Deadlines
The police department has been given clear instructions about how this process will work. If any police employee wishes to switch to the Old Pension Scheme, they need to submit their information in the format provided by the Director General of Police (DGP) headquarters by October 31, 2024. It’s important to note that once the old pension scheme is selected, this decision is final and cannot be changed later.
Closing of National Pension Scheme (NPS) Accounts
For those who opt for the Old Pension Scheme, their National Pension Scheme (NPS) account will be closed on June 30, 2025. After this, any money that has been deposited in their NPS account will be transferred to their General Provident Fund (GPF) account. The government’s contribution to their NPS account will be deposited back into the state treasury.
What is the Old Pension Scheme?
Under the Old Pension Scheme, retired government employees are entitled to a mandatory pension. This pension is calculated as 50% of the basic salary they received at the time of retirement. This means that an employee will get half of their final basic pay as a pension.
Another advantage of the Old Pension Scheme is that retired employees continue to receive allowances such as the Dearness Allowance (DA), just like employees who are still working. If the government increases the DA for working employees, pensioners under OPS will also see an increase in their pension.
Why Is This a Big Deal?
The Old Pension Scheme offers better post-retirement benefits compared to the National Pension Scheme. With the government’s decision, eligible police employees now have the opportunity to secure a more stable and assured pension after they retire.