Pension: Govt gave a gift, employees who took VRS after 20 years will now get pension in this way

Pension- Good news for central government employees. The Personnel Ministry said on Tuesday that under recently notified rules, central government employees are entitled to a “pro-rata assured payment” if they opt for voluntary retirement after completing 20 years or more of service. This means that employees are entitled to a guaranteed payment, i.e., pension, upon opting for voluntary retirement. This is no less than a gift for central government employees before Diwali.

The Department of Pension and Pensioners’ Welfare has notified the Central Civil Services Rules, 2025 in the official gazette on September 2. These rules are to regulate service matters relating to benefits under the Integrated Pension Scheme in respect of Central Government employees who have opted for UPS as an option under NPS. These rules, among other things, provide an option to UPS opting employees for voluntary retirement from service after completing 20 years of service.

The ministry said in a statement, “Under the Unified Pension Scheme, the full assured payout is available only after completing 25 years of qualifying service. However, on opting for VRS (Voluntary Retirement Scheme) after completing 20 years or more of service, the assured payout will be payable to the subscriber on a proportionate basis. That is, whatever pension or fund is created will be given to him on a proportionate basis.”

You will also get benefit of all these

This payment will be payable to the employees only after the date of retirement. “Other benefits such as final withdrawal of 60 per cent of personal funds and lump sum benefit of 1/10th of basic pay and dearness allowance for every half year of service, retirement gratuity, leave encashment, CGEGIS (Central Government Employees Group Insurance Scheme) benefits can be availed on retirement,” the statement said.

Further, in case of death of the employees after taking VRS but before the assured payment commences, the family payment will be paid to the legally married spouse from the date of death of the employee. Welcoming the amendment, Manjeet Singh Patel, National President, All India NPS Employees Federation said that this is a much needed step for all Central Government employees especially the Paramilitary Force personnel who work under extremely difficult conditions.

Patel said, “This will help all those employees who are unable to serve in the department after completing 20 years of regular service.”