Entitlement on Discharge from Service Due to Invalidation under Unified Pension Scheme (UPS) for Central Government Employees
The Department of Pension and Pensioners’ Welfare (DoPPW), Government of India, has issued a new Office Memorandum (OM No. 57/03/2022-P&PW(B)/8361(8) dated 29th October 2025 clarifying the entitlements of Central Government employees discharged from service due to invalidation (medical unfitness) under the Unified Pension Scheme (UPS) within the National Pension System (NPS) framework.
This circular, issued from Lok Nayak Bhavan, New Delhi, aims to ensure transparency and fairness in handling cases of employees who are permanently incapacitated and unable to continue service due to physical or mental infirmity.
Key Highlights of the Office Memorandum
1. Applicability
The provisions apply to all Central Government civil employees who have opted for the Unified Pension Scheme (UPS) under the National Pension System (NPS).
The rules are governed by:
- CCS (Implementation of Unified Pension Scheme under NPS) Rules, 2025, and
- CCS (Payment of Gratuity under NPS) Rules, 2021.
2. Retirement on Invalidation: Process and Entitlements
Application for Retirement on Invalidation
An employee who becomes permanently incapacitated due to bodily or mental infirmity may apply for invalidation retirement through the Head of Department (HOD).
If the employee is unable to apply personally, the spouse or a family member may apply on their behalf.
Medical Examination Procedure
- Upon receiving the application, the Head of Office must refer the case to the specified medical authority within 15 days.
- The medical examination must be conducted within 30 days of receiving the request.
- A lady doctor must be part of the Medical Board when a female employee is examined.
Issuance of Medical Certificate
After examination:
- If the employee is found unfit for further service, a Medical Certificate (Format-1) will be issued, and invalidation retirement benefits will be granted.
- If the employee is fit for a less laborious job, they may be offered a lower post.
- If no such post exists, they will still be granted invalidation retirement benefits.
3. Pension and Benefits after Invalidation
Depending on the pension option chosen under Rule 10 of CCS (UPS under NPS) Rules, 2025, the benefits differ slightly:
a) If the employee opted for benefits under CCS (Pension) Rules
- The case will be processed under CCS (Pension) Rules, 2021 or CCS (Extraordinary Pension) Rules, 2023.
- The Unified Pension Scheme corpus will be closed:
- Government contributions and returns will be transferred back to the Government account.
- The employee’s contributions will be paid in lump sum to the individual.
b) If the employee opted for benefits under Unified Pension Scheme (UPS)
- Benefits will be processed as per PFRDA (Operationalisation of Unified Pension Scheme under NPS) Regulations, 2025.
- In addition, the employee will be eligible for Death Gratuity under Rule 22 of the CCS (Payment of Gratuity under NPS) Rules, 2021.
4. Responsibility of Ministries and Departments
All Ministries, Departments, and attached/subordinate offices are directed to bring these provisions to the notice of officials handling pension and service matters for strict compliance and uniform implementation.
In Summary
The 2025 Office Memorandum ensures that Central Government employees under the Unified Pension Scheme (UPS) who are medically invalidated from service receive fair pensionary benefits, either through the UPS or CCS Pension Rules, depending on their chosen option.
It standardizes procedures for:
- Medical examination and certification,
- Retirement application processing,
- Pension corpus management, and
- Gratuity payment under NPS.
This notification strengthens the welfare framework for employees facing permanent disability, aligning with the government’s commitment to humane and transparent pension administration.