Gift for Government Employees: Full Pension Now Available After 20 Years of Service
On September 4, the Central Government gave a major Diwali gift to central government employees by notifying new rules under the Unified Pension Scheme (UPS). These rules are related to pensions and retirement benefits. According to the updated policy, employees completing just 20 years of regular service will now be eligible for full pension benefits.
Earlier, the minimum required service was 25 years, but government employees had long been demanding a reduction in this limit. Responding positively, the government has now implemented this change, providing a significant benefit to employees ahead of the festive season.
Additional Benefits Under the Unified Pension Scheme
Employees who opt for the UPS will receive several benefits in addition to pension. If an employee becomes disabled during service or dies due to any reason, they or their family will have the right to choose between benefits under the CCS Pension Rules or the UPS regulations. This ensures financial security for the employee or their family in such unfortunate circumstances.
Implementation and Contribution Details
The government has introduced this scheme as an alternative to the National Pension Scheme (NPS), with implementation set for April 1, 2025. Both the employee and the government will contribute to the scheme. In case of delays in registration or crediting contributions, the government will compensate the employees accordingly.
Switching from NPS to UPS
The Ministry of Finance recently announced that eligible employees under UPS can switch from NPS to UPS under a one-time, one-way option. This switch can be made either one year before retirement or three months before opting for Voluntary Retirement (VRS).
Eligibility Restrictions
However, employees who have been removed from service due to disciplinary action or are under investigation will not be allowed to switch from NPS to UPS. The last date to opt for this switch is September 30, 2025.