Entitlement on Voluntary Retirement Under Unified Pension Scheme (UPS) – Explained
The Department of Pension and Pensioners’ Welfare (DoPPW) has issued a new Office Memorandum No. 57/03/2022-P&PW(B)/8361(2) dated 29th October 2025, clarifying the rules governing voluntary retirement for Central Government employees who have opted for the Unified Pension Scheme (UPS) under the National Pension System (NPS).
This memorandum provides detailed guidelines on the procedure, eligibility, and entitlement of benefits for employees taking voluntary retirement under the new UPS framework.
🔹 What is the Unified Pension Scheme (UPS)?
The Unified Pension Scheme (UPS), introduced through the Central Civil Services (Implementation of Unified Pension Scheme under NPS) Rules, 2025, aims to offer a hybrid pension structure to Central Government civil employees covered under NPS. It merges elements of both NPS and the old defined benefit pension model to ensure financial security after retirement.
🔹 Key Rules on Voluntary Retirement Under UPS
1. Eligibility for Voluntary Retirement
As per Rule 13 of the UPS Rules, 2025:
- A Central Government employee can opt for voluntary retirement after completing 20 years of regular service.
- The employee must give at least three months’ written notice to the appointing authority before retirement.
2. Acceptance of Retirement Notice
- The notice requires formal acceptance by the appointing authority.
- However, if no response is received within the three-month period, the retirement automatically becomes effective on the expiry date of the notice.
3. Request for Shorter Notice Period
- Employees may request to shorten the three-month notice period, giving valid reasons in writing.
- The appointing authority may allow a shorter notice if it does not cause administrative inconvenience.
4. Withdrawal of Voluntary Retirement Notice
- Once the notice is submitted, it cannot be withdrawn without the specific approval of the appointing authority.
- Any withdrawal request must be made at least 15 days before the intended retirement date.
5. Exceptions
This rule does not apply to:
- Employees retiring under the Special Voluntary Retirement Scheme (VRS) for surplus staff (as per OM No. 25013/6/2001-Estt.(A) dated 28th February 2002).
- Employees absorbed in autonomous bodies or public sector undertakings (PSUs).
🔹 Entitlement of Pension Benefits Under UPS
The memorandum also defines the pension entitlements based on the length of service at the time of voluntary retirement:
| Length of Service | Entitlement Type | Benefit Description |
|---|---|---|
| Less than 25 years | Pro-rata Assured Payout | As per PFRDA (Operationalisation of UPS under NPS) Regulations, 2025 |
| 25 years or more | Full Assured Payout | Full pensionary benefits as per PFRDA regulations |
🔹 Implementation by Ministries/Departments
All Central Government Ministries, Departments, and Organisations have been instructed to:
- Bring these new rules to the notice of all officials managing UPS/NPS matters.
- Ensure strict implementation in all attached and subordinate offices.
💡 Key Takeaway
This notification provides clarity and uniformity in handling voluntary retirement cases under the Unified Pension Scheme.
Employees now have a well-defined structure outlining eligibility, notice period, withdrawal, and pension entitlement—bringing transparency and predictability to retirement planning under UPS.
For related updates on Unified Pension Scheme, NPS rules, and government employee benefits, stay tuned to GovtJobPerks.com.