The Andhra Pradesh Cabinet has approved two major employee welfare measures, including the enhancement of the retirement age for employees of certain State-run public sector undertakings and a one-time option for eligible Contributory Pension Scheme (CPS) employees to switch to the Old Pension Scheme (OPS), Information and Public Relations Minister Kolusu Parthasarathy announced on Tuesday.

Briefing the media on the decisions taken at the Cabinet meeting chaired by Chief Minister N. Chandrababu Naidu, the Information and Public Relations (I&PR) Minister Kolusu Parthasarathy said the Cabinet had approved a proposal to increase the retirement age of regular employees working in public sector undertakings (PSUs), corporations and societies listed under Schedules IX and X of the Andhra Pradesh Reorganisation Act, 2014, from 60 years to 62 years. The decision would be implemented retrospectively from January 1, 2022,  he said, adding that the Cabinet also approved amendments to the relevant service rules to facilitate the reinstatement of employees who had retired after that date due to the earlier retirement age limit.

In another significant decision, the Cabinet approved a proposal to provide a one-time option for eligible State government employees covered under the CPS to migrate to the OPS, in line with the policy adopted by the Central government. The benefit would be extended to employees whose recruitment notifications were issued before September 1, 2004, but who joined government service on or after that date. Such employees would be allowed a one-time opportunity to switch from CPS to OPS in accordance with Central government guidelines, he said.

According to Mr. Parthasarathy, the decision is expected to provide enhanced long-term financial and social security to around 10,715 State government employees and their families who fall under the ambit of G.O. Ms. No. 653. These employees would become eligible for service pension and family pension benefits after retirement. The long-term benefit to each eligible employee is estimated at an average of about ₹3.39 crore over the course of retirement and family pension entitlements.

The Minister, however, noted that the implementation of the proposal is expected to impose a net financial burden of approximately ₹34,850.83 crore on the State government during the period from 2026 to 2067.

Mr. Parthasarathy described the decisions as a reflection of the government’s commitment to strengthening employee welfare and ensuring greater financial security for public servants and their families.