NC-JCM Seeks Old Pension Scheme for NPS Employees Recruited Against Pre-2003 Vacancies

New Delhi | September 2026

The National Council–Joint Consultative Machinery (NC-JCM) has requested the Central Government to extend the benefit of the Old Pension Scheme (OPS) to certain Central Government employees who are presently covered under the National Pension System (NPS) but were recruited against vacancies that had been sanctioned before 22 December 2003.

The issue was raised by the NC-JCM staff side during a meeting with the Secretary, Department of Personnel and Training (DoPT), on 3 September 2026. According to a communication issued by NC-JCM Secretary Shiva Gopal Mishra to staff-side members on 5 September, the organisation has requested that vacancy-sanction letters issued by Ministries or Departments before 22 December 2003 should be considered while determining eligibility for the Old Pension Scheme.

What is the NC-JCM demanding?

The NPS was notified by the Government on 22 December 2003 and became applicable to new Central Government employees, except the Armed Forces, appointed on or after 1 January 2004.

The NC-JCM has argued that there are cases where Ministries or Departments had sanctioned vacancies before 22 December 2003, but the actual recruitment process was delayed. As a result, employees were appointed after 1 January 2004 and were placed under NPS, even though the vacancies against which they were recruited had been sanctioned before the NPS notification.

The NC-JCM wants such vacancy-sanction letters issued before 22 December 2003 to be treated as the relevant basis for determining eligibility for OPS.

Existing provision for certain employees

The Department of Pension and Pensioners' Welfare (DoP&PW), through an Office Memorandum dated 3 March 2023, had already provided a one-time option in certain cases.

Under that provision, Central Government civil employees who were appointed against a post or vacancy that had been advertised or notified for recruitment before 22 December 2003, but who joined Government service on or after 1 January 2004 and were covered by NPS, could be given a one-time option to come under the CCS (Pension) Rules, 1972, now the CCS (Pension) Rules, 2021.

The latest NC-JCM demand seeks to address another category of employees — cases where the vacancy itself was sanctioned by the Ministry or Department before 22 December 2003, but the recruitment process was subsequently delayed by the concerned Directorate, Headquarters or other unit.

Why is 22 December 2003 important?

The Ministry of Finance notified the NPS on 22 December 2003. The scheme became mandatory for Central Government employees appointed on or after 1 January 2004, except members of the Armed Forces.

Consequently, employees who joined service from 1 January 2004 were generally covered by NPS.

However, a number of employees had been involved in recruitment processes that began before the implementation of NPS but were completed after 1 January 2004. Some of these employees approached courts seeking coverage under the old pension rules.

The NC-JCM has referred to several judicial decisions in support of its position, including decisions of the Central Administrative Tribunal, Ernakulam Bench; Kerala High Court; and CAT, New Delhi. According to the NC-JCM's representation, these decisions support consideration of the date on which the relevant vacancy was sanctioned in determining pension coverage in certain circumstances.

Defence civilian employees cited as an example

The issue is particularly relevant to some Defence civilian employees.

C Srikumar, General Secretary of the All India Defence Employees' Federation (AIDEF), cited the example of vacancies sanctioned by the Ministry of Defence for ordnance factories.

According to the report, more than 7,000 vacancies were sanctioned on 5 May 2003 for ordnance factories. However, the recruitment process continued for several years, and employees recruited against those vacancies were subsequently placed under NPS.

The NC-JCM and employee representatives have argued that employees recruited against such pre-NPS vacancies should not have to individually approach courts for relief if the Government accepts the principle that the original vacancy-sanction date should determine eligibility.

What happened to employees recruited against pre-NPS vacancies?

After the NPS was introduced, several employees who had been recruited against vacancies advertised or notified before 22 December 2003 approached courts seeking coverage under the old pension system.

The Government subsequently introduced a mechanism for certain categories of such employees.

The DoP&PW Office Memorandum dated 17 February 2020 provided a one-time option in specified cases. Subsequently, the 3 March 2023 OM provided further clarification regarding Central Government civil employees appointed against posts or vacancies advertised or notified before the NPS notification date but who joined service on or after 1 January 2004.

The present NC-JCM demand goes further by seeking recognition of vacancy-sanction letters issued by Ministries or Departments before 22 December 2003, even in cases where the subsequent recruitment process was delayed.

What exactly does the NC-JCM want?

The NC-JCM is seeking that:

• Vacancies sanctioned by a Ministry or Department before 22 December 2003 should be taken into account.

• Employees recruited against those vacancies but appointed after 1 January 2004 should be considered for OPS.

• The original vacancy-sanction letter should be treated as the relevant notification for determining pension eligibility.

• Employees should not be required to individually approach courts where the facts of their cases fall within the principle accepted by the Government.

• The benefit should cover appropriate cases where recruitment was delayed because of administrative processes after the vacancies had already been sanctioned.

What has the Government decided?

At present, there is no reported Government order granting OPS to all employees covered by the NC-JCM's latest demand.

The issue was discussed with the DoPT Secretary on 3 September 2026. According to the NC-JCM communication, the Secretary assured the staff side that the matter would be examined and appropriate action would be taken.

Therefore, the latest development should be understood as an employee-side demand/representation under consideration, and not as a final decision extending OPS eligibility.

Who could potentially benefit?

If the Government accepts the NC-JCM proposal, it could potentially benefit NPS-covered Central Government employees who:

1. Were recruited against vacancies sanctioned by the concerned Ministry/Department before 22 December 2003;

2. Joined Government service on or after 1 January 2004;

3. Were placed under NPS because their appointment took place after the NPS implementation date; and

4. Fall within the conditions eventually specified by the Government in any future order or clarification.

Actual eligibility would depend on the Government's final decision and the specific records of each employee, including the vacancy-sanction order, recruitment notification, appointment order and date of joining.

Present status

The issue is currently under consideration following the NC-JCM's representation to the DoPT.

No blanket order has yet been reported that automatically transfers all NPS-covered employees recruited against pre-22 December 2003 sanctioned vacancies to OPS.

The development is therefore significant for employees who believe their recruitment was against vacancies sanctioned before the introduction of NPS, but they would need to wait for the competent authority's decision or clarification regarding the precise eligibility conditions.

Source: Economic Times, 8 September 2026; Mint, 8 September 2026.