All central government employees covered under the Unified Pension Scheme (UPS) will now get retirement and death gratuity benefits like those in the Old Pension Scheme (OPS). Union Minister Jitendra Singh shared this information on Wednesday. He said this was a long-pending demand of many government employees. By making this change, the government is meeting an important request and giving equal retirement benefits to all.

The minister also said that this new rule shows the government’s commitment to give social security to all employees under the National Pension System (NPS).

Many Reforms to Help Citizens

At a conference held to talk about the 11-year journey of the Ministry of Personnel, Public Grievances and Pensions, Union Minister Jitendra Singh said that many reforms have been made to simplify governance, help citizens, and make the system more people-friendly.

He said that central government employees under the Unified Pension Scheme (UPS) will now get retirement and death gratuity benefits as per the Central Civil Services (Payment of Gratuity under NPS) Rules, 2021. The Department of Pension and Pensioners’ Welfare (DoPPW) issued an order allowing employees under UPS to get Old Pension Scheme (OPS) benefits if they die during service or are removed due to illness or disability.

Employees Will Have a Choice

DoPPW Secretary V. Srinivas told PTI, “This order gives employees the choice to come under OPS if they die during service. It is a positive step and clears doubts that many employees had.”

Manjit Singh Patel, President of the All India NPS Employees Federation, welcomed the move and called it a historic and much-needed step.

Patel said that adding retirement and death gratuity to UPS will clear confusion among employees. He believes many more employees will now choose UPS. DoPPW had earlier issued the Central Civil Services (NPS Implementation) Rules, 2021 to manage service matters of employees under NPS. Rule 10 of this law allows employees to choose between NPS and OPS if they die during service or retire due to disability.

Finance Ministry’s Notification

The Finance Ministry had already said in a notice dated January 24 that UPS will be given as an option under NPS for those joining Central Government Civil Services from April 1, 2025.

DoPPW also clarified in a new order that central government employees under UPS will get retirement and death gratuity benefits as per the Central Civil Services (Payment of Gratuity under NPS) Rules, 2021.

V. Srinivas added that this rule brings equal treatment between NPS and UPS pensioners. Now, they will also be eligible for gratuity up to ₹25 lakh.