Andhra Pradesh Government Allows Eligible CPS Employees to Switch to Old Pension Scheme

The Andhra Pradesh government has notified a one-time option allowing a section of employees under the Contributory Pension Scheme (CPS) to shift to the Old Pension Scheme (OPS), as per news reports.  

The order, G.O.Ms. No.53, was issued by the Finance (HR.III-Pension & GPF) Department on 13 July 2026 after the state Cabinet approved the proposal on 23 June 2026. 

Eligible Employees Identified 

The order applies only to employees whose recruitment notifications were issued before 1 September 2004, but who joined government service on or after 1 September 2004.  

Although they entered service after the CPS came into force, their recruitment process had begun under the earlier pension system. The government said the date of the recruitment notification will determine eligibility. 

Decision Follows Earlier Representations 

Andhra Pradesh introduced the CPS from 1 September 2004, following the Centre's introduction of the National Pension System (NPS) from 1 January 2004.  

Since then, employee associations and public representatives had sought similar relief to that provided by the Central government. In 2020 and 2023, the Centre allowed certain employees whose recruitment began before the cut-off date but whose appointments were delayed to opt for the Old Pension Scheme. 

Option To Remain Under CPS 

Employees covered by the order are not required to shift to the OPS. Those who wish to continue under the CPS can do so. However, employees choosing the Old Pension Scheme must submit their option in the prescribed format within three months from the date of the order, unless the government extends the deadline. 

Appointment orders and joining records will be required to establish eligibility. 

Option Cannot Be Changed Later 

The government has stated that the choice will be final and irrevocable. Employees who do not exercise the option within the prescribed period will remain under the CPS.  

The order also states that the benefit is restricted to the category of employees identified in the notification and should not be treated as a precedent for future claims. 

Separate Guidelines to Be Issued 

The Finance Department and the Directorate of Treasuries and Accounts will issue detailed instructions on the application process and the treatment of the CPS corpus for employees who shift to the OPS.  

Relevant departments have been directed to implement the order. 

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Conclusion 

The notification provides a one-time pension option for employees recruited before the September 2004 cut-off but appointed later. The government has limited the benefit to eligible employees covered by the order, while the existing pension system will continue for all others. 

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