**Policy Summary: CCS Implementation of UPS Under NPS Rules, 2025: Option for Voluntary Retirement from Service**
The Department of Pension and Pensioners Welfare has notified the Central Civil Services Implementation of the Unified Pension Scheme (UPS) under the National Pension System (NPS) Rules, 2025, effective September 2, 2025, as published in the official Gazette. This policy addresses service matters related to benefits under the UPS for Central Government employees who have opted for the UPS under the NPS. A key provision allows UPS subscribers to opt for voluntary retirement from service (VRS) after completing 20 years of service.
While the full Assured payout under the UPS is available after 25 years of qualifying service, employees opting for VRS after 20 years or more of service will receive a pro-rata Assured payout. This payout will be calculated as (years of qualifying service / 25) multiplied by the full Assured payout amount, payable from the date of superannuation.
In addition to the pro-rata Assured payout, employees taking VRS are eligible for other retirement benefits, including final withdrawal of 60% of their Individual Corpus, a lump sum benefit of 110% of Basic Pay and Dearness Allowance for each six-month period of service, retirement gratuity, leave encashment, and CGEGIS benefits.
Furthermore, in the event of the death of a subscriber after taking VRS but before the commencement of the Assured payout, the legally wedded spouse will be granted a family payout from the date of the subscriber's death.
Key Entities Referenced
Ministry of Personnel, Public Grievances Pensions: The Indian government ministry responsible for personnel matters, public grievances, and pensions.
CCS IMPLEMENTATION OF UPS UNDER NPS RULES, 2025: Central Civil Services (CCS) Implementation of the Unified Pension Scheme (UPS) under the National Pension System (NPS) Rules, 2025.
National Pension System: A defined contribution pension system launched by the Government of India.
Department of Pension and Pensioners Welfare: A department responsible for pension policies and welfare of pensioners.
Unified Pension Scheme: A pension scheme under the National Pension System Rules, 2025 for Central Government employees.
Central Government: The federal government of India.
CGEGIS: Central Government Employees Group Insurance Scheme
PIB Delhi: Press Information Bureau, Delhi - the nodal agency of the Government of India to disseminate information to the media.
Ministry of Personnel, Public Grievances & Pensions
THE CCS (IMPLEMENTATION OF UPS UNDER
NPS) RULES, 2025- OPTION FOR VOLUNTARY
RETIREMENT FROM SERVICE
Posted On: 16 SEP 2025 12:12PM by PIB Delhi
The Department of Pension and Pensioners’ Welfare has notified in the official Gazette on 02.09.2025 the
Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System)
Rules, 2025 for regulating the service matters relating to benefits under the Unified Pension Scheme in respect
of Central Government employees opting for UPS as an option under the NPS.
These rules inter-alia provides option to UPS subscribers for voluntary retirement from service after
completion of 20 years of service.
The full Assured payout under the Unified Pension Scheme is available only after completion of 25 years of
qualifying service. However, on opting VRS after completion of 20 years or more service, Assured payout on
prorata basis i.e. year of qualifying service divided by 25 of the Assured payout shall be payable to subscriber.
The payout shall be payable from the date of superannuation. The other benefits viz. the Final withdrawal of
th
60% of Individual Corpus and lump sum benefit of 1/10 of Basic pay and Dearness allowance for each six-
monthly period of service, retirement gratuity, leave encashment, CGEGIS benefits can be availed on
retirement. Further, in case of death of subscriber after taking VRS but before start of Assured payout, legally
wedded spouse shall be granted family payout from the date of death of the subscriber.
***
NKR/PSM
(Release ID: 2167058)