The Department of Pension and Pensioners’ Welfare (DoP&PW) has revised several rules governing central government employees and pensioners. These changes aim to clarify the service-related matters for employees covered under the National Pension System (NPS).

Here’s a breakdown of the key changes and their implications.

Voluntary retirement made easier

Central government employees covered by the NPS can now opt for voluntary retirement after completing 20 years of regular service.

To initiate this process, an employee must submit a written notice of at least three months to their appointing authority.

Acceptance of retirement notice

As per the official memorandum, the notice must be accepted by the appointing authority. If the authority does not respond within the notice period, the retirement becomes effective automatically at the end of the three months.

Shorter notice period option

Employees may request a shorter notice period of less than three months.

This request must be made in writing, stating the reasons for the urgency.

The appointing authority has the discretion to approve this request if it does not cause any administrative inconvenience.

Exceptions to the rule

This new provision does not apply to employees who:

• Retire under the Special Voluntary Retirement Scheme as notified by the Department of Personnel and Training.
• Are dismissed or removed from service.

Implications of compulsory retirement

Another significant update relates to compulsory retirement, dismissal, or removal from government service. According to the October 11, 2024 memorandum, Rule 18 addresses how these actions affect the accumulated pension corpus under the NPS.

If a central government employee is compulsorily retired or dismissed, they will receive their lump sum and annuity from the accumulated pension corpus.

This payment will be in accordance with regulations set by the Pension Fund Regulatory and Development Authority (PFRDA).