Entitlement on Resignation from Government Service under Unified Pension Scheme (UPS): DoPPW Issues Clarification
The Department of Pension and Pensioners’ Welfare (DoPPW), under the Ministry of Personnel, Public Grievances and Pensions, has issued an important Office Memorandum (OM No. 57/03/2022-P&PW(B)/8361(3)) dated 29th October 2025 regarding entitlement on resignation for Central Government employees who have opted for the Unified Pension Scheme (UPS) under the National Pension System (NPS) framework.
Key Points of the Office Memorandum
The Office Memorandum highlights the provisions under Rule 15 of the Central Civil Services (Implementation of Unified Pension Scheme under NPS) Rules, 2025, which governs how resignation affects pension benefits for government employees under UPS.
1. Forfeiture of Assured Payout on Resignation
As per Rule 15, if a Central Government employee resigns from service or a post, and the resignation is not withdrawn in the public interest by the appointing authority, it results in forfeiture of the assured payout under the Unified Pension Scheme.
In simpler terms, resignation without reinstatement approval leads to loss of the assured pension benefits under UPS.
2. Payment of Accumulated Pension Wealth
However, the accumulated pension wealth in the employee’s individual corpus under the Unified Pension Scheme shall still be payable in lump sum.
This payout will be made in accordance with the regulations notified by the Pension Fund Regulatory and Development Authority (PFRDA).
3. 90-Day Waiting Period
The memorandum clearly states that this lump sum payment to the subscriber shall not be made before 90 days from the effective date of resignation, i.e., the date when the employee is officially relieved from duty.
4. Payment in Case of Death During Waiting Period
If the subscriber dies within 90 days of resignation becoming effective, the accumulated pension wealth shall be paid to the legally wedded spouse.
In case the spouse does not exist, the payment will be made to the legal heir(s) of the deceased employee, as per the prescribed regulations.
5. Instructions to Ministries and Departments
The DoPPW has directed all Ministries and Departments to bring these provisions to the notice of their personnel handling Unified Pension Scheme (UPS) / NPS matters for strict and uniform implementation across all Central Government offices and subordinate units.
What This Means for Government Employees
This clarification is crucial for Central Government employees who have opted for the Unified Pension Scheme (UPS) — a hybrid pension model combining benefits of both the old pension system and the National Pension System (NPS).
Employees should note that:
- Resignation leads to forfeiture of the “assured pension” benefit under UPS.
- However, their personal accumulated corpus remains payable after a 90-day period.
- In unfortunate cases of death within 90 days of resignation, benefits go to the spouse or legal heir.
Therefore, employees planning to resign should carefully understand the financial implications under UPS before taking a decision.