Old Pension Scheme: CAT Allahabad Orders Coverage Under CCS Pension Rules for 23 Employees
In an important pension-related judgment, the Central Administrative Tribunal (CAT), Allahabad Bench has allowed an Original Application filed by 23 employees of Ordnance Factory Kanpur, holding them eligible for coverage under the Old Pension Scheme (OPS) instead of the National Pension System (NPS).
The judgment was pronounced on 13 January 2026 in O.A. No. 259 of 2024. The Tribunal set aside the order dated 31 January 2024 rejecting the applicants’ request and directed the respondents to allow them to switch over to the General Provident Fund (GPF)-cum-Statutory Pension Scheme under the CCS (Pension) Rules, 1972, now corresponding to the CCS (Pension) Rules, 2021.
Who Were the Applicants?
The case was filed by 23 employees working in Ordnance Factory Kanpur in different industrial posts. They were originally ex-Trade Apprentices and had been appointed as semi-skilled industrial employees after a selection process.
The applicants contended that their recruitment process had commenced before the introduction of the National Pension System because the relevant manpower sanction for their posts had been issued in September 2003.
Their main claim was that although they joined service after 1 January 2004, the relevant recruitment/vacancy process had originated before the NPS notification dated 22 December 2003.
Background of the Old Pension Scheme vs NPS Issue
The National Pension System was introduced for Central Government employees appointed on or after the relevant cut-off date. The Department of Pension and Pensioners’ Welfare subsequently issued an Office Memorandum dated 3 March 2023 dealing with Central Government employees who were appointed against posts or vacancies that had been advertised or notified before 22 December 2003, but who joined service on or after 1 January 2004.
Under paragraph 4 of the OM, eligible employees could be given a one-time option for coverage under the CCS (Pension) Rules, 1972, now the CCS (Pension) Rules, 2021. The option was required to be exercised by 31 August 2023.
This distinction between the date of joining and the date of notification/sanction of the vacancy became central to the Allahabad CAT case.
Why Did the Applicants Claim Old Pension Scheme Coverage?
The applicants relied upon the fact that the Chairman of the erstwhile Ordnance Factory Board had sanctioned 30 semi-skilled industrial employee posts for direct recruitment at Ordnance Factory Kanpur through a notification dated 2 September 2003.
The notification was issued before the NPS notification dated 22 December 2003.
The Tribunal noted that the September 2003 notification specifically sanctioned 30 semi-skilled industrial posts for direct recruitment and contained instructions regarding the recruitment process.
The applicants therefore argued that the relevant recruitment process had begun before the NPS cut-off date, even though their actual appointment and joining took place later.
Government’s Stand
The respondents opposed the claim and argued that the applicants were not entitled to OPS coverage.
According to the respondents, the actual trade tests and interviews were conducted in 2004, after 22 December 2003. Therefore, according to their argument, the recruitment process itself should be treated as having commenced after the NPS cut-off date.
The respondents also argued that the September 2003 communication was only an internal sanction and could not be treated as an advertisement or notification for recruitment.
What Did CAT Allahabad Decide?
The Tribunal examined the 3 March 2023 DoP&PW Office Memorandum as well as the Ministry of Defence clarification dated 10 April 2023.
The Tribunal noted that the Ministry of Defence clarification stated that, in cases where vacancies had been sanctioned by the Ministry of Defence or Ordnance Factory Board, the date of communication from OFB regarding recruitment against those vacancies could be considered for determining eligibility under the CCS (Pension) Rules.
The Tribunal further observed that the date of notification or sanction of the vacancy/post should be considered for deciding eligibility.
2 September 2003 Became the Key Date
A significant finding of the Tribunal was that the notification dated 2 September 2003 was issued before the NPS notification of 22 December 2003.
The Tribunal found that the notification sanctioned 30 semi-skilled posts for direct recruitment and that the applicants were ex-Trade Apprentices of the factory.
It therefore held that 2 September 2003 was the relevant cut-off date in the case for determining eligibility for coverage under the CCS (Pension) Rules.
The Tribunal consequently held that the applicants were eligible for the Old Pension Scheme under the CCS (Pension) Rules, 1972, now the CCS (Pension) Rules, 2021.
CAT Relies on Earlier Principal Bench Decision
The Allahabad Bench also considered an earlier decision of the CAT Principal Bench, New Delhi, in Lokendra Kumar Sharma & Others v. Secretary, Department of Defence Production & Others, O.A. No. 976/2024, decided on 7 January 2025.
The Tribunal noted that the applicants in the earlier case had also been recruited as semi-skilled industrial employees pursuant to a manpower sanction issued before 22 December 2003.
The Principal Bench had directed the respondents to grant the benefit of the Old Pension Scheme under the CCS (Pension) Rules within eight weeks. The Allahabad Bench found the facts of the present case to be identical and followed that decision.
Final Order of CAT Allahabad
The CAT Allahabad Bench allowed the Original Application and set aside the impugned order dated 31 January 2024, insofar as it related to the applicants.
The Tribunal held that all 23 applicants were entitled to coverage under the pension scheme under the CCS (Pension) Rules, 1972, now CCS (Pension) Rules, 2021.
The respondents were directed to permit the applicants to switch over to the GPF-cum-Statutory Pension Scheme and complete the exercise within eight weeks from the date of receipt or production of the certified copy of the order.
What This CAT Judgment Means
The judgment highlights the importance of the date on which a vacancy or post was notified/sanctioned, particularly in cases involving employees who joined Central Government service after 1 January 2004.
In this particular case, the Tribunal treated the 2 September 2003 manpower notification as the relevant date because it preceded the 22 December 2003 NPS notification.
However, the judgment concerns the specific facts and records placed before the Tribunal. It should not be read as automatically granting OPS coverage to every employee who joined Central Government service after 1 January 2004.
Eligibility under the applicable Government instructions would depend on the facts of the individual case, including the nature and date of the relevant vacancy notification/sanction and the applicable recruitment records.
Key Dates in the Case
| Event | Date |
| NPS notification | 22 December 2003 |
| Notification sanctioning 30 semi-skilled posts | 2 September 2003 |
| Applicants’ recruitment/appointments | After the 2003 sanction |
| DoP&PW OM on one-time OPS option | 3 March 2023 |
| One-time option deadline under the OM | 31 August 2023 |
| Rejection order challenged before CAT | 31 January 2024 |
| CAT Principal Bench decision in Lokendra Kumar Sharma case | 7 January 2025 |
| CAT Allahabad judgment | 13 January 2026 |
| Time granted to respondents for implementation | 8 weeks |
Important Point for Central Government Employees
Employees who were appointed under NPS but believe that their posts or vacancies were advertised or notified before 22 December 2003 may need to examine their original recruitment records carefully.
Relevant documents may include the vacancy notification, recruitment sanction, manpower sanction, departmental correspondence, appointment records and other documents establishing when the recruitment process was initiated.
The Allahabad CAT judgment demonstrates that the date of the relevant vacancy/post notification or sanction can become a significant issue in determining OPS eligibility, depending on the applicable Government instructions and the facts of the case.
Conclusion
The CAT Allahabad Bench’s decision in O.A. No. 259 of 2024 provides an important development in the continuing issue of Old Pension Scheme coverage for Central Government employees who joined service after 1 January 2004.
For the 23 Ordnance Factory Kanpur employees, the Tribunal concluded that the relevant recruitment sanction dated 2 September 2003 preceded the NPS cut-off date of 22 December 2003. On that basis, the applicants were held entitled to switch from NPS to the GPF-cum-Statutory Pension Scheme under the CCS (Pension) Rules.
The order, however, must be understood in the context of the specific facts, documents and Government instructions considered by the Tribunal.
Case: O.A. No. 259 of 2024
Court: Central Administrative Tribunal, Allahabad Bench
Judgment Date: 13 January 2026
Subject: Old Pension Scheme / NPS / CCS Pension Rules
Applicants: Mangal Singh & Others
Respondents: Union of India & Others