Finality of an exercised option in pension schemes prevents subsequent claims for change after significant delay, reinforcing estoppel and laches principles.

ORDER :

This Writ Petition assails the order dated 12.02.2024 passed by the Central Administrative Tribunal (CAT), Hyderabad, in O.A.No.21/1485/2015, whereby the Tribunal dismissed the Original Application filed by the late husband of the petitioner. The husband of the petitioner had filed the subject O.A. seeking a direction to the respondents to grant him one more opportunity to switch over from the Contributory Provident Fund (CPF) Scheme to the General Provident Fund-cum-Pension (GPF-cum-Pension) Scheme.

2. Heard Sri T.P.Acharya, learned counsel for the petitioner; Sri A.Kranti Kumar Reddy, learned counsel for respondent Nos.1 to 3 and Sri Ajay Kumar Kulkarni and learned counsel for respondent No.4.

Factual Matrix (in brief)

3. The factual background, necessary for the adjudication of the present writ petition, is as follows:

i) Late T. Vijaya Kumar (husband of the writ petitioner) was appointed as a Post Graduate Teacher in Kendriya Vidyalaya Sangathan (KVS) on 05.08.1985 and was initially governed by the CPF Scheme;

ii) Following the Fourth Central Pay Commission, the Government of India issued an Office Memorandum on 01.05.1987 (Ex.P2), allowing a switch over to the GPF- cum-Pension Scheme. Employees in service on 01.01.1986 were deemed to have switched over to the GPF-cum-Pension Scheme unless they specifically opted out and desired to continue to be governed by the CPF Scheme by 30.09.1987. The relevant portion of the Office Memorandum is extracted as under:

3.2 The employees of the category mentioned above will, however, have an option to continue under the CPF Scheme, if they so desire. The option will have to be exercised and conveyed to the concerned Head of Office by 30.09.1987 in the form enclosed if the employees wish to continue under the CPF Scheme. If no option is received by the Head of Office by the above date the employees will be deemed to have come over to the Pension Scheme.

3.3. The CPF beneficiaries, who were in service on 1.1.1986, but have since retired and in whose case retirement benefits have also been paid under the CPF Scheme, will have an option to have their retirement benefits calculated under the Pension Scheme provided they refund to the Government, the Government contribution to the Contributory Provident Fund and the interest thereon, drawn by them at the time, of settlement of the CPF Account. Such option shall be exercised latest by 30.09.1987.

3.4. ****

3.5 ****

3.6 The option once exercised shall be final.

iii) KVS adopted the scheme mutatis mutandis vide its Office Memorandum dated 01.09.1988, extending the date of exercise option till 31.01.1989.

iv) The husband of the petitioner consciously opted to continue under the CPF Scheme on 09.01.1989 by submitting a signed option form dated 09.01.1989;

v) 26 years later, in the year 2015, while still in service, the husband of the petitioner filed O.A.No.21/1485/2015 before the CAT seeking "one more chance" to switch to the GPF-cum-Pension Scheme, citing subsequent disparities in benefits;

vi) The Central Administrative Tribunal dismissed his O.A. on 12.02.2024, primarily on the grounds that he had exercised a conscious option which was final, and his claim for switch over cannot be allowed on account of inordinate delay and laches.

vii) The husband of the petitioner expired on 15.01.2025. The petitioner now seeks family pension, which would be available, only if her husband was covered under the GPF-cum-Pension Scheme. The petitioner claims the benefit of family pension on the ground that the High Court of Delhi had held that similarly placed employees were entitled to the switch over of GPF-cum-Pension Scheme from CPF Schem