VRS New Rule: The central government has issued an important guideline for government employees. The Ministry of Personnel, Public Grievances and Pensions (Department of Pension and Pensioners’ Welfare – DoPPW) has issued new guidelines on voluntary retirement and its associated benefits for government employees who have opted for the Unified Pension Scheme (UPS) under the National Pension System (NPS).
Voluntary retirement provision
The guidelines issued by the DoPPW state that central government employees who opt for the Unified Pension Scheme (UPS) can avail themselves of voluntary retirement under Rule 13. According to this rule, if a government employee completes 20 years of regular service, they have the right to voluntarily retire from their service.
3 months prior notice mandatory
The DoPPW clarified that under this rule, any employee may seek voluntary retirement from service by providing at least three months’ prior written notice to their appointing authority. This means that if an employee wishes to retire after completing 20 years of service, they must provide at least three months’ prior notice to their department.
Benefits available under UPS
The new guidelines also clarify that employees voluntarily retiring under the UPS will be provided pension, gratuity, and other retirement benefits as per their eligibility criteria. This provision will provide greater flexibility and security to employees enrolled in the NPS system, enabling them to better plan their financial situation.
Retirement experts believe that this government move will make the UPS system more attractive. This will provide employees with the confidence that their pension rights will be protected if they wish to retire early after long service.