Summary of this article
DoPPW clarifies resignation rules under Unified Pension Scheme
Assured pension payout forfeiture applies unless allowed by the approving authority
Subscribers can withdraw accumulated pension wealth after 90 days
The Department of Pension and Pensioners’ Welfare (DoP&PW) has issued an update regarding the entitlements of central government employees who resign after opting for the Unified Pension Scheme (UPS).
The detailed rules regarding the financial implications for such subscribers after leaving service were issued in a memorandum dated October 29, 2025.
The DoPPW has also notified the Central Civil Services (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025, which govern the rules regarding the treatment of accumulated pension wealth of employees after they leave service.
How Will The Accumulated Amount Be Paid?
According to Rule 15 of the CCS (Implementation of UPS under NPS) Rules 2025, when an employee resigns from government service or a post, it would result in forfeiture of assured payout under the UPS, unless it is allowed by the appointing authority. However, it does not mean they will completely lose their money in the individual corpus. Such subscribers remain entitled to receiving their accumulated pension wealth in the individual corpus, which is payable to them in a lump sum in accordance with the authority’s notified regulations.
90-Day Waiting Period
It is to be noted that the amount is permitted to be withdrawn only after 90 days from the date the resignation became effective and the subscriber was relieved from duty. So, while the lump sum payment of the individual corpus is allowed upon voluntary resignation, the withdrawal is restricted for a 90-day period after the subscriber is officially relieved from service.
In case of the death of the subscriber before the end of this 90-day period, the rule stipulates a lump sum payment of accumulated pension wealth in the individual corpus to the legally wedded spouse. The payment can be transferred to the legal heir(s), in case the legally wedded spouse does not exist, as per the regulations the authority notifies.
Voluntary Retirement
In another memorandum issued on the same day, DoPPW clarified that if an employee who is covered under the UPS opts for voluntary departure after completing 20 years of service, voluntary retirement entitlement will become applicable. According to the rule, in case of voluntary retirement after 20 years of service, a pro-rata assured payout is payable to the employee.
According to Rule 13 of the CCS (Implementation of UPS under NPS) Rules 2025, “at any time after a subscriber has completed twenty years’ regular service, he may, by giving notice of not less than three months in writing to the appointing authority, retire from the service.”
It should be noted that voluntary retirement after completing 25 years of service makes an employee eligible for a full assured payout under the PERDA (Operationalisation of UPS under NPS) Regulations, 2025. But this will be paid from the date when such an employee would have superannuated in case of continuation of service.
