Court Affirms Right of Employees Recruited Before 1986 to Move from CPF to GPF-cum-Pension Scheme Without Time Bar
In a significant ruling, the Jharkhand High Court has upheld a decision by the Central Administrative Tribunal allowing employees of the Kendriya Vidyalaya Sangathan (KVS) who were recruited before January 1, 1986, to switch from the Contributory Provident Fund (CPF) Scheme to the General Provident Fund (GPF)-cum-Pension Scheme. This decision comes as a relief to many employees who had not exercised their option to continue under the CPF Scheme within the stipulated timeframe.
The Division Bench, comprising Chief Justice Tarlok Singh Chauhan and Justice Rajesh Shankar, dismissed writ petitions filed by KVS challenging the Tribunal's directive. The High Court noted that the employees did not exercise their option for the CPF scheme within the given timeframe, thereby defaulting to the GPF-cum-Pension Scheme as per the KVS memorandum dated September 1, 1988.
The court highlighted the precedence of the Supreme Court's judgment in the case of "University of Delhi v. Shashi Kiran and Others (2022)," which holds that if no option was exercised by the employees, they are deemed to have opted for the GPF-cum-Pension Scheme. The court emphasized that the judgment in Shashi Kiran's case prevails over conflicting earlier judgments, such as "K.V.S. v. Jaspal Kaur (2007)."
The ruling also addresses the broader implications of the choice to select a pension scheme as a beneficial provision for employees. The High Court observed that the denial of more beneficial pension options, despite the initial choice of CPF by some employees, would be discriminatory.
The court further noted that the Tribunal correctly applied the principles set by the Supreme Court and found no merit in the petitions filed by KVS. The High Court's decision underscores the binding nature of the latest Supreme Court judgments in cases of conflicting precedents, reinforcing the application of beneficial legislation for the welfare of employees.
This decision is seen as a reinforcement of employees' rights to opt for more advantageous pension schemes without being barred by delays or procedural lapses, thus setting a precedent for similar cases across various autonomous bodies and government institutions.
Bottom Line:
Employees of Kendriya Vidyalaya Sangathan (KVS) recruited before 01.01.1986 can switch over from Contributory Provident Fund (CPF) Scheme to General Provident Fund (GPF)-cum-Pension Scheme if no option was exercised for continuance in CPF Scheme within the stipulated time.
Statutory provision(s):
- Kendriya Vidyalaya Sangathan memorandum dated 01.09.1988
- DOPT No. 4/1/87 dated 01.05.1987
- Administrative Tribunals Act, 1985
