Voluntary Retirement Rules under Unified Pension Scheme Clarified by DoPPW

The Department of Pension and Pensioners’ Welfare (DoPPW) has issued an important clarification regarding voluntary retirement for Central Government employees who have opted for the Unified Pension Scheme (UPS) under the National Pension System (NPS).

The Office Memorandum, issued under No. 57/03/2022-P&PW(B)/8361(2), outlines the conditions and entitlements applicable when a subscriber under the UPS chooses to retire voluntarily.

Key Provisions of Voluntary Retirement under UPS

Under Rule 13 of the Central Civil Services (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025, a government servant who has completed 20 years of regular service may apply for voluntary retirement by giving a minimum of three months’ notice to the appointing authority.

However, if the appointing authority does not expressly refuse permission within the notice period, the retirement will automatically take effect upon the expiry of the said three months.

Relaxation of Notice Period

A government servant may request a shorter notice period, citing valid reasons. The appointing authority has the discretion to consider such a request and curtail the three-month period if it does not cause administrative inconvenience.

Withdrawal of Notice

Once a notice of voluntary retirement has been submitted, withdrawal of the notice is permitted only with the specific approval of the appointing authority. The request for withdrawal must reach the authority at least 15 days before the intended date of retirement.

Exceptions to Applicability

The voluntary retirement rule under UPS does not apply to:

• Employees retiring under the Special Voluntary Retirement Scheme (SVRS) of the Department of Personnel & Training (DoPT) for surplus employees, as per OM dated 28 February 2002, or
• Those who retire upon absorption in an autonomous body or a public sector undertaking.

Entitlement on Voluntary Retirement

The memorandum specifies two categories of entitlement based on the qualifying service:

• Less than 25 years of qualifying service: The subscriber will be eligible for pro-rata assured payout as per the Pension Fund Regulatory and Development Authority (PFRDA) (Operationalisation of UPS under NPS) Regulations, 2025.
• 25 years or more of qualifying service: The subscriber will be entitled to the full assured payout admissible under the same PFRDA regulations.

Directive to Ministries and Departments

The DoPPW has instructed all Ministries, Departments, and attached/subordinate offices to disseminate these provisions to officials handling UPS/NPS matters and ensure strict implementation.

View OM