The Department of Pension and Pensioners’ Welfare (DoPPW) has issued guidance on voluntary retirement rules under the Unified Pension Scheme (UPS) for central government employees. , the government wants to remove confusion and lay out the process in plain terms.
, how much notice must be given, whether the decision can be reversed, and how pension will be calculated.
Under Rule 13 of the UPS regulations, any central government employee who has completed 20 years of regular service can apply for voluntary retirement (VRS). This applies only to those who have opted for UPS under NPS.
This means employees cannot seek VRS under UPS unless they have served the minimum required period of 20 years.
An employee wanting to take VRS must submit a written notice of at least three months to the appointing authority.
However, there is flexibility. The appointing authority can shorten the notice period if early retirement does not disrupt office work or create administrative issues. This decision is taken on a case-by-case basis.
If the appointing authority does not reject the notice before the three-month period ends, the retirement is automatically considered approved. The employee will then retire on the date mentioned in the notice.
No separate clearance is needed once the notice period expires without objection.
Yes, but only with approval.
DoPPW rules state that once an employee submits a VRS request, they cannot withdraw it on their own. They must seek written approval from the appointing authority.
Also, the request to withdraw must be submitted at least 15 days before the planned retirement date.
The UPS-VRS rules do not apply to certain categories of employees. These include those retiring under the special VRS scheme for surplus staff introduced by the Department of Personnel and Training (DoPT).
The norms also exclude government employees who resign to take up roles in autonomous bodies or public sector units (PSUs).
Under the UPS rules, pension after VRS is based on the total years of service completed.
If an employee has served for less than 25 years, they will receive a pro rata assured pension, which means the payout is calculated in proportion to the period of service, rather than the full amount.
However, those who have completed 25 years or more of service qualify for the full assured pension benefits under the UPS framework.
In other words, the new guidelines aim to offer clarity and smoother planning for retirement decisions, ensuring eligible employees understand their rights, timelines, and benefits under UPS.