https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Unified Pension Scheme Rules 2025 Out: Central Govt Employees Can Now Take VRS After 20 Years, Get Pro-Rata Pension

New Pension Rule Update: Deadline to Opt for Unified Pension Scheme Ends on Sept 30
Indian Masterminds Stories

New Delhi: The Department of Posts has issued a circular informing its employees about the recently notified Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System) Rules, 2025, published in the official gazette by the Department of Pension and Pensioners’ Welfare on September 2, 2025.

These rules provide a clear regulatory framework for Central Government employees who choose to shift to the Unified Pension Scheme (UPS) under the National Pension System (NPS).

Voluntary Retirement Allowed After 20 Years

One of the most significant updates under the new rules is that Unified Pension Scheme (UPS) subscribers are now eligible to opt for voluntary retirement (VRS) after completing 20 years of qualifying service.

However, employees who retire voluntarily before completing 25 years of service will receive the Assured payout on a pro-rata basis.

The formula for the payout is:
(Years of Qualifying Service ÷ 25) × Full Assured Payout.

The payout will begin only from the date of superannuation, not from the VRS date.

Full Assured Payout After 25 Years of Service

Employees who complete 25 years or more of qualifying service under UPS will be eligible for the full assured pension payout, as laid out under the new scheme.

Additional Retirement Benefits Under UPS

Employees retiring under the Unified Pension Scheme – whether after VRS or regular retirement – are also entitled to the following benefits:

  • Final withdrawal of 60% of Individual NPS Corpus
  • Lump sum benefit of 1/10th of Basic Pay + Dearness Allowance for every six-month period of service
  • Retirement Gratuity
  • Leave Encashment
  • CGEGIS (Central Government Employees Group Insurance Scheme) benefits

Death After VRS: Spouse Entitled to Family Payout

If a UPS subscriber dies after taking VRS but before reaching the superannuation age, their legally wedded spouse will receive the family payout starting from the date of death, ensuring financial protection to the family even in premature loss of the employee.

Deadline to Opt for UPS: September 30, 2025

All eligible Department of Posts employees currently under NPS and qualified to opt for the UPS have been advised to take note of the key provisions and exercise their option by September 30, 2025.

The department emphasized the importance of making an informed decision and suggested reviewing the comparative benefits before opting in.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Madhya-Pradesh-State-IAS
Major Bureaucratic Reshuffle in Madhya Pradesh: 4 IAS Officers, Including Asheesh Singh, to Become Secretaries
Vishvajit Sahay IDAS
Who is Vishvajit Sahay, India’s New CGDA with Over Three Decades of Service in Defence Finance?
IES Simmi Chaudhary
Centre Approves Appointment of 16 Officers as Joint Secretaries Across Ministries; IAS, IRS, IRPS Officers Among Appointees - Check List Here
shastri-bhawan
6 Key Ministries Relocated from Udyog Bhawan & Shastri Bhawan to GPOA Block-3, Netaji Nagar - Check All Details Here
Cyber Diplomacy in 2025: How Nations Are Tackling Cyber Threats, AI, and Digital Conflicts
Cyber Diplomacy in 2025: How Nations Are Tackling Cyber Threats, AI, and Digital Conflicts
4_11zon
From Awareness to Action: Panna Tiger Reserve Marks 15 Years of Nature Camps - A Legacy of Community Conservation
From Esports to Soft Power: How Countries Use Video Games for Public Diplomacy and Global Connection
From Esports to Soft Power: How Countries Use Video Games for Public Diplomacy and Global Connection
Mizoram people history
New Vangchhia Findings Could Rewrite Mizo Migration Timeline: IAS Officer Rinsanga Urges Re-examination
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-10-31 at 13.49
Walking with the Wild: How Dr. Sonali Ghosh is Protecting Assam’s Forests
Former IAS Anil Swarup
Former IAS Anil Swarup Reveals His Secrets of Success
IAS Gokul S
Meet IAS Gokul S — The Officer Who Turned Disability into Determination | Video Interview 
ADVERTISEMENT
UPSC Stories
WhatsApp Image 2025-11-01 at 15.31
How Safna Nazarudeen Became Kerala’s Youngest Muslim Woman IAS Officer
Safna Nazarudeen, youngest Muslim woman from Kerala to crack UPSC with All India Rank 45, now serves...
Rashi Kumawat RAS Rajasthan
RAS Topper Rashi Kumawat: Meet The Supermom Who Balanced Government Job, Motherhood & Dreams to Secure 6th Rank
Jaipur’s Rashi Kumawat, a gold medalist engineer and working mother, secured 6th rank in RAS 2023 through...
IPS Shrikesh Kumar Rai UPSC
How Ramcharitmanas Guided IPS Officer Shrikesh Kumar Rai Through UPSC Struggles
Read how IPS Shrikesh Kumar Rai rose from a small village in UP to crack UPSC after multiple failures,...
Social Media
Tenzin Yangki IPS Arunachal
Historic First: Who Is Tenzin Yangki, Arunachal Pradesh’s First Woman to Join IPS? Anand Mahindra Hails Her
She secured an impressive 545th rank in the prestigious UPSC Civil Services Examination - 2022.
IFS Parveen Kaswan
Heartbreak by the River: 15-Day-Old Elephant Calf Rejected by Mother, Rescued by IFS Parveen Kaswan and His Team
Jaldapra, West Bengal: In a moving incident that tugs at the heart, a 15-day-old elephant calf was rescued...
Ashwini Bhide IAS and Anand Mahindra
Who Is IAS Ashwini Bhide, Hailed as a Role Model for Mumbai Metro Transformation by Anand Mahindra?
From heritage to high-tech: Bhide’s leadership in Metro Line 3 earns public praise and admiration
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Madhya-Pradesh-State-IAS
Major Bureaucratic Reshuffle in Madhya Pradesh: 4 IAS Officers, Including Asheesh Singh, to Become Secretaries
Vishvajit Sahay IDAS
Who is Vishvajit Sahay, India’s New CGDA with Over Three Decades of Service in Defence Finance?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-10-31 at 13.49
Former IAS Anil Swarup
IAS Gokul S
ADVERTISEMENT
ADVERTISEMENT