Pension options: Andhra Pradesh gives select employees one-time option to switch to Old Pension Scheme

The Andhra Pradesh government has given a one-time opportunity to a section of employees covered under the Contributory Pension Scheme (CPS) to switch to the Old Pension Scheme (OPS), provided they meet specified eligibility conditions.

In a circular issued on July 13, 2026, the state government clarified that the option is available only once. Employees who opt for the OPS will not be allowed to revert to the CPS later. Those who choose not to exercise the option will continue under the existing CPS.

Who is eligible?

The one-time switch is available to employees who were recruited through advertisements or notifications issued before September 1, 2004, but joined government service on or after September 1, 2004.

Although these employees were recruited against vacancies notified before the CPS came into effect, they were placed under the CPS because they joined after its implementation. Over the years, many of them had sought permission to be covered under the OPS instead.

Andhra Pradesh introduced the CPS on September 1, 2004, about eight months after the Central government rolled out the National Pension System (NPS) on January 1, 2004.

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Similar to Centre's 2023 decision

The state's move mirrors a decision taken by the Central government in March 2023, when it allowed certain central government employees to switch from the NPS to the OPS. The benefit was extended to employees whose recruitment advertisements had been issued before January 1, 2004, but who joined service after the NPS came into force.

Conditions for opting for OPS

The Andhra Pradesh government has laid down several conditions for employees wishing to switch to the OPS.

To be eligible, the recruitment notification or advertisement for the post must have been issued before September 1, 2004, with the advertisement date serving as the determining criterion. The employee must have been appointed against that notification on or after September 1, 2004, and should currently be covered under the CPS.

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Eligible employees will also be required to submit their appointment orders and joining reports as proof.

The option must be exercised in the prescribed format within three months from the date of the government order or within any extended period notified by the government.

Importantly, the decision will be final and irrevocable. Employees who choose the OPS will not be allowed to switch back to the CPS, while those who do not exercise the option within the stipulated period will continue under the CPS.

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One-time measure

The state government has clarified that the order is a one-time relief for this specific category of employees and should not be treated as a precedent for future claims or for employees outside the specified eligibility criteria.

The Finance Department and the Directorate of Treasuries and Accounts will issue detailed implementation guidelines separately, including the procedure for exercising the option and the treatment of the accumulated CPS corpus for employees who opt to shift to the OPS.

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