Govt Revises Voluntary Retirement Norms For Central Govt Employees Under NPS. See What Has Changed

The Department of Pension and Pensioners’ Welfare (DoPPW) provided the latest direction regarding the entitlement for central govt workers under the NPS who want to opt for voluntary retirement

After voluntary retirement, the government employee shall be entitled to receive benefits available under the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under National Pension System) Regulations, 2015

Source : Tata AIA

The Indian government has issued guidelines regarding voluntary retirement norms for central government employees under the National Pension Scheme. The Department of Pension and Pensioners’ Welfare (DoPPW) under the Ministry of Personnel, Public Grievances and Pensions, provided the latest direction regarding the entitlement for central government workers under the NPS who want to opt for voluntary retirement.

In an office memorandum dated October 11, 2024, the department notified the Central Civil Services (Implementation of National Pension System) Rules, 2021 to govern the issues related to service of central government civil employees who are covered under the NPS, reported The Financial Express.

Norms For Voluntary Retirement

The memorandum noted, “The rule provides that at any time after a central government employee covered under NPS has completed twenty years’ regular service, he may, by giving notice of not less than three months in writing to the appointing authority, retire from service.”

Notably, Rule 12 of the Central Civil Services (Implementation of NPS) Rules, 2021 states voluntary retirement from service and entitlement on the same from government service with regards to individuals working under the central government and a part of the NPS.

The authority noted that government employees under the Centre can opt for voluntary retirement anytime after completing twenty years of service with notice of at least three months to the concerned authorities.

However, in case, the appointing authority doesn’t refuse to allow retirement before the expiry of the notice period mentioned, the retirement shall become effective from the date of the expiry of the said period.

After voluntary retirement, the government employee shall be entitled to receive benefits available under the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under National Pension System) Regulations, 2015. These benefits will be similar to those granted to a subscriber retiring on superannuation.