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.
