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New UPS rules simplify voluntary retirement for 23 lakh central government employees

Planning an early exit? The government’s updated UPS rules bring flexibility—and strict deadlines—for 23 lakh NPS-covered employees. Here’s what’s changed.

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New UPS rules simplify voluntary retirement for 23 lakh central government employees

The Department of Pension & Pensioners' Welfare has issued clarifications regarding voluntary retirement provisions under the Unified Pension Scheme (UPS) for central government civil employees covered under the National Pension System (NPS). The new rules, effective from April 1, 2025, affect around 23 lakh employees previously under the NPS.

Employees can now apply for voluntary retirement (VRS) after completing 20 years of regular service, with a minimum notice period of three months. They can also request a shorter notice period, subject to approval by the appointing authority and no administrative inconvenience.

The notice of voluntary retirement must be accepted by the appointing authority. If not refused, retirement becomes effective on the notice period's expiry. However, a submitted notice for voluntary retirement cannot be withdrawn unless approved by the appointing authority at least 15 days before the intended date of retirement.

The new rule does not apply to employees retiring under the special voluntary retirement scheme for surplus employees or those retiring for absorption in autonomous bodies or PSUs. The government has directed all ministries and departments to ensure strict implementation of these provisions and disseminate guidelines to personnel handling UPS and NPS matters.

The new UPS regulation, issued in 2021, provides clarity on voluntary retirement provisions for central government employees covered under the NPS. Employees can now plan their retirement better, with provisions for notice periods and assured payouts based on their years of service.

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