Centre brings parity in gratuity under old and new pension schemes

Decision addresses 'significant demand of government staff', says Union Minister Jitendra Singh

Central government employees under the Unified Pension Scheme (UPS) will be eligible for retirement and death gratuity benefits similar to those provided by the Old Pension Scheme (OPS), said Union Minister Jitendra Singh on Wednesday.

 

Long-pending demand fulfilled

 

The change “addresses a significant demand of government staff and brings parity in retirement benefits,” Singh, who is minister of state for personnel, was quoted by PTI as saying.

 

Singh described the decision as part of the government’s efforts to extend social security to all categories of employees under NPS.

 

The Department of Pension and Pensioners’ Welfare (DoPPW) has issued an order enabling employees under UPS to avail of retirement and death gratuity benefits under the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021.  ALSO READ | Retired a day before your annual pay hike? You might still get pension boost

Key changes and benefits

 

PTI quoted DoPPW Secretary V Srinivas as saying, “The order gives an employee the option to revert to OPS in case of death in service. It is progressive in nature and addresses the clarifications being sought by employees.”

 

The new orders clarify that:

 

• Government employees under UPS will receive retirement and death gratuity. 
• In case of death or invalidation during service, employees can opt for OPS benefits. 
• Gratuity up to Rs 25 lakh will be available under the amended rules.

 

PTI also reported that a separate order confirms the parity of benefits between UPS and OPS pensioners.

 

“The inclusion of death-cum-retirement gratuity in UPS will remove all the misconceptions of the employees,” said Manjeet Singh Patel, president of the All India NPS Employees Federation, according to PTI.

 

The Finance Ministry had earlier notified the introduction of UPS as an option under NPS starting April 1, 2025. According to PTI, the notification allows a one-time option to new central government recruits and requires existing UPS subscribers to formally choose between UPS and the CCS (Pension) Rules or Extraordinary Pension Rules.

 

(With inputs from PTI.)