Telangana HC orders implementation of Old Pension Scheme for eligible employees

Hyderabad: The Telangana High Court has ruled that employees selected through recruitment notifications issued before September 1, 2004, but appointed after that date, must be covered under the Old Pension Scheme (OPS).

A division bench comprising Justice Sam Koshy and Justice Nandikonda Narsing Rao made it clear that the state government is obligated to implement the Old Pension Scheme for such employees.

The court warned that failure to comply would invite contempt of court proceedings against the officials concerned.

Deadline set

The bench directed the authorities to implement the order by June 10, 2026. In case of non-compliance, the Secretary of the Law department, Papireddy, and the Principal Secretary of the Finance Department, Sandeep Kumar Sultania, have been ordered to appear personally before the court on that date.

The ruling came in response to a petition filed by employees of the Law Department.

The case was argued by High Court advocates V Rajasekhar Reddy and N Lavanya on behalf of 65 employees working in courts across Mahabubnagar, Nizamabad, Ranga Reddy district, and CBI courts.

Employees’ argument

The petitioners argued that since the recruitment notifications were issued before September 1, 2004—when the Old Pension Scheme was in force—they had applied and completed the selection process under that system.

However, they were later placed under the Contributory Pension Scheme (CPS), which came into effect for appointments made after that date.

Accepting their contention, the court held that recruitment initiated under the Old Pension Scheme cannot be shifted to CPS merely due to delays in appointments.

Wider impact

Beyond the 65 Law Department employees, the ruling is expected to benefit around 13,000 employees across Telangana, including those working in GENCO, TRANSCO, DISCOMs, and various other government departments.

The Central Government had earlier issued guidelines allowing similar employees to be covered under the Old Pension Scheme. With this judgment, the implementation of OPS for eligible employees in Telangana is likely to gain momentum.