Govt explains VRS rules for UPS subscribers

The Department of Pension and Pensioners' Welfare (DoPPW) has released guidelines on voluntary retirement and associated benefits for government employees who have opted for Unified Pension Scheme (UPS) under National Pension System (NPS).

Voluntary retirement provisions
Explaining about the rules for voluntary retirement, DoPPW says that Rule 13 of these regulations provides for voluntary retirement from service and entitled to voluntary retirement from government service in the case of a Central Government servant who has selected the Unified Pension Scheme (UPS) under the National Pension System (NPS).

Notice period duration for voluntary retirement
DoPPW says that the rule provides that at any time after a subscriber has completed twenty ‘years’ of regular service, he may, by giving a notice of not less than three months in writing to the appointing authority, retire from the service.

Also read: UPS voluntary retirement scheme rules: How your payout will be calculated if you retire after 20 years of service? Know latest rules

What if permission to exit is denied by appointing authority?
DoPPW explains that if the appointing authority does not explicitly refuse permission before the expiry of the notice period, the retirement will automatically take effect on the date specified of the said period.

What appointing authority should do when he receives notice from employee?
The appointing authority, on receipt of such a request, may consider the request for reducing the period of notice of three months on merits. DoPPW says that if he is satisfied that the reducing of the period of notice will not cause any administrative inconvenience, the appointing authority may relax the requirement of notice of three months.

Can an employee withdraw his voluntary retirement notice?
As per the rule, a government official who has chosen to retire under this regulation and has given the requisite notice to the appointing authority is not permitted to withdraw his notice unless such authority specifically approves it. However, the request for withdrawal must be made at least fifteen days before his anticipated retirement date.

Employees for whom above-mentioned VRS rules won’t be applicable
DoPPW says that the above-mentioned rules won’t apply for-
Employees retiring under the special voluntary retirement scheme of the Department of Personnel and Training (DoPT) for surplus staff (as per O.M. No. 25013/6/2001-Estt. (A) dated February 28, 2002, and subsequent amendments), or

Employees retiring for absorption in autonomous bodies or public sector undertakings (PSUs).

Pension entitlement for employees taking VRS before and after 25 years of service
The entitlement under the Unified Pension Scheme depends on the length of the qualifying service at the time of voluntary retirement:

Before 25 years of service: The subscriber will be eligible for a pro-rata assured payout as specified under the Pension Fund Regulatory and Development Authority (PFRDA) Operationalisation of Unified Pension Scheme Regulations, 2025.

After 25 years of service: The subscriber will be entitled to the full assured payout under the same PFRDA regulations.