Entitlement on Voluntary Retirement for Government Employees Under NPS

 Entitlement on Voluntary Retirement for Government Employees Under NPS

The Government of India recently issued an Office Memorandum detailing the entitlement for voluntary retirement for Central Government employees covered under the National Pension System (NPS). The memorandum, released by the Ministry of Personnel, Public Grievances and Pensions, sets out specific provisions regarding voluntary retirement for employees under the NPS framework.

Key Provisions for Voluntary Retirement Under NPS

According to Rule 12 of the Central Civil Services (Implementation of NPS) Rules, 2021, a Central Government employee covered under the National Pension System is eligible for voluntary retirement after completing twenty years of regular service. The employee must give a notice of not less than three months in writing to the appointing authority to retire from service.

The notice provided by the employee must be accepted by the appointing authority. If the authority does not reject the request before the expiry of the notice period, the retirement becomes effective from the date of expiry of the period specified in the notice. In special cases, the employee can also request the reduction of the notice period to less than three months, which the authority may consider based on administrative convenience.

Restrictions on Withdrawing Retirement Notice

Once an employee has chosen to retire under this rule and given the required notice, they are generally precluded from withdrawing the notice, except with the specific approval of the appointing authority. However, the request for withdrawal must be made at least fifteen days before the intended retirement date.

Exceptions and Non-Applicability

The memorandum further clarifies that these rules are not applicable to government employees who:

• Retire under the Special Voluntary Retirement Scheme for surplus employees as per the relevant Office Memorandum of 2002.
• Retire to be absorbed in an autonomous body or a public sector undertaking.

Benefits Under NPS for Voluntary Retirees

Employees who retire voluntarily under the NPS are entitled to benefits provided under the Pension Fund Regulatory and Development Authority (PFRDA) Regulations, 2015. These benefits are similar to those received by a subscriber retiring on superannuation.

Furthermore, the employee may choose to continue their Individual Pension Account beyond the date of retirement or defer the payment of benefits under the NPS. This requires exercising an option in accordance with the PFRDA (Exits and Withdrawals under NPS) Regulations, 2015.

Implementation and Compliance

All Ministries and Departments have been requested to strictly implement the provisions outlined in the memorandum for voluntary retirement entitlement for government servants under NPS. The Ministry emphasizes the importance of ensuring that the above information is properly communicated to all personnel handling NPS matters.

Conclusion

This new memorandum provides much-needed clarity regarding voluntary retirement for Central Government employees covered under the NPS, outlining the eligibility criteria, the required notice period, and exceptions. These provisions aim to provide a clear path for those wishing to retire early, with due benefits under the NPS.