Central Government Employees Pensions: A big news has come out for the central employees. Actually, a notification has been issued by the Department of Pension and Pensioners Welfare on Tuesday.
Under the CCS (UPS applicable under NPS) Rules 2025, if the employees want to opt for UPS in the new pension scheme, then they can take VRS after 20 years of full service. However, they will get full payout only after 25 years of service.
According to the new change, any central employee can take VRS after 20 years of duty. However, the full pension (full payout) will be available only after completing 25 years of service. This rule is to be implemented under CCS (UPS Rules 2025). This will benefit those employees who come under NPS.
No full payout on 22 years of service
If you want to understand it in simple language then you can understand it like this – Suppose an employee takes VRS after 22 years of service. In this case he will get permission to take VRS. But he will get the full pension payout only if he has served for 25 years. This means that after 22 years of service, full benefits on VRS will not be available.
What did the ministry say in its statement?
A statement from the Ministry of Personnel, Grievances and Pensions said that full assured payout will be given only after 25 years, but those employees who retire before that will be given benefits on pro-rata basis. In a statement issued by the ministry, it has been said that under UPS, employees have been given the option to take voluntary retirement (VRS) after completing 20 years of service. However, the full assured payout of this scheme is available only when the employee completes 25 years of qualifying service.
If someone takes VRS at 22 years then
It further states that if an employee after completing 20 years or more but less than 25 years of service VRS If he takes it, he will get the pension on pro-rata basis. This means that pension will be calculated in proportion to the number of years of service. For example, if someone has served 22 years, the pension will be calculated in proportion to that. For example, if someone has served for 22 years, he will get 22/25 i.e. 88% of the entire pension of 25 years. However, this payment Employee Will be available only when he reaches his regular retirement age.