UP Government offers old pension scheme option to eligible employees

The Uttar Pradesh Government is extending a helping hand to its employees. The state cabinet recently approved a one-time option for eligible government staff to choose the old pension scheme (OPS). This means employees working for the state government, government-aided educational institutions, and autonomous institutions funded by the state can opt for the OPS if they meet a specific criterion.

Here’s the key detail: the option is available to those who were appointed on or after April 1, 2005, but crucially, their vacancy advertisement needs to have been published before March 28, 2005. This earlier date is significant because it’s when the UP Government implemented the National Pension System (NPS).

Before the NPS, state employees received a pension based on their final salary, offering a more predictable income stream after retirement. The NPS, introduced in 2005, works differently. It invests a portion of employee and employer contributions in the stock market, and the final payout depends on market performance.

This decision by the UP Government echoes a similar policy implemented by the central government in March 2023. Under that policy, central government employees appointed after January 1, 2004, could opt for the old pension scheme if their vacancy advertisement predated the NPS implementation notification of December 22, 2003.

The UP Government’s move offers a window of opportunity for eligible employees to choose a pension plan that might provide a more stable income after retirement.