The Uttar Pradesh government has made a significant announcement for police personnel appointed before March 28, 2005.
They are now being given the option to choose the Old Pension Scheme (OPS) instead of the National Pension System (NPS). This decision comes in response to demands from police associations and unions.
Deadline for Opting Out of NPS
Police officers wishing to switch to OPS must submit their applications by October 31, 2024. Once the choice is made, it will be final and cannot be reversed. The application should be submitted to the DGP Headquarters.
Impact on NPS Contributions
If an officer opts for OPS, their NPS contributions will cease from 2025. The accumulated funds in their NPS account will be transferred to their General Provident Fund (GPF) account.
Transition to OPS
If an officer chooses OPS, their NPS account will be closed on June 30, 2025.
The accumulated funds in the NPS account will be transferred to their GPF account.
The government contribution to NPS will be deposited in the state treasury.
Benefits of the Old Pension Scheme
Guaranteed Pension- Retired police officers under OPS are entitled to a mandatory pension.
Pension Calculation- The pension is calculated as 50% of the basic salary received at the time of retirement.
Continued Benefits- Retired officers continue to receive dearness allowance (DA) and other allowances, similar to active employees.
Eligibility for Retired Personnel
Retired police officers who meet the eligibility criteria under the Age Retirement Benefits Rules 1961 can also opt for OPS. However, they will need to return the government’s contribution to the NPS along with interest.
The Uttar Pradesh government’s big decision to all offer police personnel the choice of OPS is a significant step towards ensuring financial security for retired employees.
This move addresses the concerns of many police personnel who prefer the guaranteed pension benefits provided under the OPS.