Absorption Post-NPS Cutoff & Acceptance of NPS Terms Precludes OPS Benefits for Casual Labourers, DoPT OM Not Applicable: CAT Principal Bench - 2025-05-05

Laws, Courts & Judgments.

CAT Denies Old Pension Scheme to 176 Retired Railway Workers, Cites Inapplicability of Recent OM to Casual Labour Absorption

New Delhi: The Central Administrative Tribunal (CAT), Principal Bench, has dismissed a plea by 176 retired Group-D railway employees seeking benefits under the Old Pension Scheme (OPS). The Tribunal, comprising Hon’ble Mrs. Harvinder Kaur Oberoi (Judicial Member ) and Hon’ble Dr. Sumeet Jerath (Administrative Member), ruled on May 5, 2025, that the Department of Personnel and Training (DoPT) Office Memorandum (OM) dated March 3, 2023, which allows a one-time option for OPS, does not apply to their case as they were casual laborers absorbed into service after the New Pension Scheme (NPS) came into effect.

The judgment in O.A. No. 872/2024 emphasized that the applicants were regularized in 2006, well after the January 1, 2004, cutoff for NPS, and had accepted the terms of the NPS at the time of their appointment.

Case Background: A Long-Drawn Battle for Pension Benefits

The 176 applicants, led by Shital Yadav , were casual workers with Indian Railways , screened for regularization as far back as 1982. Their panel was published in 1988, but their actual absorption was significantly delayed, occurring only in 2006. They contended that vacancies for their posts were notified prior to December 22, 2003 (the NPS notification date), and that juniors had been absorbed before them.

This was the second round of litigation for the applicants. In a previous case (OA No. 250/1998 and batch), the Tribunal had, on May 15, 2001, acknowledged that some juniors were absorbed earlier and that vacancies against which the applicants were to be absorbed were notified in April 1996. Despite this, their appointments were finalized only in 2006, making them subject to the NPS. Their representations for OPS benefits based on the DoPT OM of March 3, 2023, were rejected, leading to the current O.A.

Applicants' Arguments: Delayed Absorption and Applicability of OPS OM

The applicants, represented by Advocate Ms. Ankita Patnaik , argued forcefully that: * Their appointments were against vacancies notified well before the NPS implementation (April 1996). * The delay in their absorption until 2006 was solely attributable to the Railways. * The DoPT OM dated 03.03.2023 should apply to them, as it allows a one-time option for OPS if the post was advertised/notified before 22.12.2003. * Several High Court and Supreme Court judgments have extended OPS benefits where recruitment processes began pre-NPS, even if appointments were post-NPS. * Juniors similarly placed, or even appointed before them, have received OPS benefits. * The absorption of juniors before them was held violative of Articles 14 & 16 by the Tribunal in its 2001 judgment.

They cited precedents like Shyam Kumar Choudhary & Ors. v. UOI & Ors. and Niraj Kumar Singh & Ors. v. UOI & Ors. , where courts granted OPS to individuals whose recruitment started before the NPS cutoff.

Respondents' Counter: NPS Applicability and Acceptance by Applicants

The Union of India, represented by Advocate Mr. Ronak Karanpuria, countered that: * The applicants were absorbed in 2006 against existing Group ‘D’ vacancies, after the NPS was implemented. * Their offer letters in 2006 explicitly stated that their pension would be governed by the NPS, and these terms were accepted by all applicants. * The claim was belated, as the applicants had already retired. * The DoPT OM of 03.03.2023 was not applicable to them. * Jurisdictional issues were also raised, suggesting the Patna Bench of CAT was the appropriate forum for some applicants (though the Principal Bench proceeded to decide the matter).

Tribunal's Reasoning: DoPT OM Not for Casual Labour Absorption Post-NPS

The Tribunal meticulously examined the DoPT OM dated 03.03.2023, which states: > "....It has now been decided that, in all cases where the Central government Civil Employee has been appointed against a post or vacancy which was advertised or notified for recruitment/appointment, prior to the date of notification for National Pension System, i.e,, 22.12.2003 and is covered under the National Pension System on joining service on or after 01.01.2004, may be given a one-time option to be covered under the CCS (Pension) Rules, 1972 (now 2021)....."

In its decisive finding, the Tribunal stated: > "The applicants’ claim for benefits under Old Pension Scheme (OPS) in the light of the above DoPT OM does not legally stand as it applies only to employees appointed against vacancies notified or advertised prior to introduction of National Pension Scheme (NPS) on 22.12.2003. In the instant OA no vacancies were notified/advertised before 22.12.2003 [in the manner contemplated by the OM for these applicants]. Also this scheme does not apply in cases of absorption of casual labours/employees. " (Para 8)

The Tribunal further noted: > "The applicants in the instant OA were regularised in 2006 which is after the cut off date of 01.01.2004. Their offer letters clearly states that “during temporary service you will not be entitled to pension or other facilities like the State Railway Provident Fund, Gratuity or other allowances.” ...pension and provident fund entitlements would be governed by the restructured defined contributory pension system or the New Pension System. These terms and conditions of employment were acquiesced and accepted by the applicant then in 2006 and now they cannot to back on their word and challenge them. " (Para 8)

Final Decision and Implications

Concluding that the balance of convenience lay with the respondents, the Tribunal dismissed the O.A., finding it lacking in merit. The judgment underscores a critical distinction: the DoPT OM of March 2023, aimed at addressing anomalies for direct recruits whose selection process straddled the NPS introduction, is not applicable to casual laborers absorbed into regular service post-NPS, especially when they had accepted the terms of the NPS.

This decision serves as a significant clarification on the scope of the 2023 DoPT OM concerning OPS eligibility, particularly for employees whose regularization journey as casual laborers was protracted and concluded after the NPS implementation.