New rules allow early retirement for central government employees under NPS

The Department of Pension and Pensioners’ Welfare (DoP&PW) has issued new guidelines that allow Central Government employees covered under the National Pension System (NPS) to retire voluntarily. This announcement was made in an office memorandum dated October 11, 2024.

“The rule provides that at any time after a central government employee covered under NPS 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 service,” the memorandum read.

According to the new rules, employees who have served for at least 20 years can choose to retire. To do this, they must submit a written notice of at least three months to their appointing authority. If the authority does not decline the request during this notice period, the retirement will take effect once the notice period ends.

Additionally, if an employee wants to retire with less than three months' notice, they can request this in writing. The appointing authority will consider the request and may allow the shorter notice if it won’t cause any problems for the administration.

Once an employee gives their notice, they cannot withdraw it unless they receive special approval from their authority. To withdraw, they must make the request at least 15 days before their planned retirement date.

These new guidelines aim to give Central Government employees more flexibility and options for planning their retirement.

When government employees retire voluntarily, they will receive benefits according to the Pension Fund Regulatory and Development Authority (PFRDA) rules. Specifically, they will be treated similarly to employees who retire at the regular retirement age, which means they can access the same benefits as those retiring on superannuation (the standard retirement age).

Key points: 
 

• Early Retirement Eligibility: Employees with at least 20 years of regular service can now opt for voluntary retirement.
• Notice Period: Employees must submit a written notice of at least three months to their appointing authority.
• Retirement Approval: If the appointing authority does not refuse the retirement request within the three-month period, the retirement will be approved.
• Retirement Benefits: Voluntary retirees will be eligible for similar benefits as those retiring at the usual retirement age.

 This rule shall not apply to a Government servant who, –

(a) retires under the Special Voluntary retirement Scheme of Department of Personnel and Training relating to voluntary retirement of surplus employees as notified by their Office Memorandum No. 25013/6/2001-Fstt. (A) dated the 28th February, 2002 as amended from time to time; or

(b) retires from Government service for being absorbed in an autonomous body or a public sector undertaking.

Government servant, on voluntary retirement from service, shall be entitled to benefits admissible under the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under National Pension System) Regulations, 2015 to the Subscriber retiring on superannuation.