The Department of Pension and Pensioners’ Welfare (DoPPW) has clarified that if a central government employee who has opted for Unified Pension Scheme (UPS) resigns from his service or post under certain conditions, it will lead to the forfeiture of the assured payout.
Circular related to resignation of central govt employees who have opted for UPS
Department of Pension and Pensioners’ Welfare (DoPPW), Ministry of Personnel, Public Grievances and Pensions, has issued a notification, outlining the entitlement of resignation from government service in respect of Central Government employees opting for United Pension Scheme under National Pension System (NPS).
What does circular say about UPS subscribers’ entitlement after resignation?
The DoPPW circular explains that according to Rule 15 of the Central Civil Services (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025, if a Central Government employee who has opted for Unified Pension Scheme (UPS) resigns from his service, and unless his resignation is allowed to be withdrawn in the public interest by the appointing authority, he will forfeit the assured payout under the scheme.
Also read: UPS rules for VRS explained: Central govt employees seeking voluntary retirement need to serve notice period of this duration
Will such employees also forfeit accumulated pension?
The circular further says that the employee will still receive the accumulated pension wealth in their individual corpus as a lump sum payment, as per the regulations notified by the pension authority.
According to the DoPPW Office Memorandum (OM) on October 29, 2025, “Rule 15 of these rules provides for the entitlement on resignation from Government service of a Central Government servant opted for Unified Pension Scheme (UPS) under the National Pension System (NPS). The rule provides that on resignation from a Government service or a post, unless it is allowed to be withdrawn in the public interest by the appointing authority, entails the forfeiture of assured payout under Unified Pension Scheme. In such cases, the accumulated pension wealth in the individual corpus shall be payable to the subscriber in lump sum in accordance with the regulations as notified by the Authority.”
When will such UPS subscribers get their lump sum payment?
As per the circular, this payment can only be made after 90 days from the date the resignation takes effect and the employee is formally relieved from duty.
What will happen if a UPS subscriber dies within the 90-day period?
If the employee passes away within this 90-day period, the accumulated pension wealth will be paid to their legally wedded spouse, or if there is none, to their legal heirs, the circular reads.
“If the subscriber dies before the expiry of ninety days from the date the resignation becomes effective, the accumulated pension wealth in the individual corpus shall be paid to the legally wedded spouse, or, if no legally wedded spouse exists, to the legal heir(s), in accordance with the regulations as notified by the Authority,” says the circular.
What is Unified Pension Scheme (UPS)?
Unified Pension Scheme (UPS) has been introduced by the Central Government as an option under the National Pension System (NPS) for Central Government employees with effect from April 1, 2025. UPS provides assured pay out based on the prescribed conditions.
1 . Can a UPS subscriber switch to NPS at a later date?
Yes, a “one-time, one-way switch” facility is available to central government employees for reverting to the National Pension System at any time during the service of the subscriber, within following timelines:
(a) Twelve months prior to the date of superannuation.
(b) Three months prior to the deemed date of voluntary retirement.
(c) At the time of resignation or compulsory retirement under Fundamental Rule 56(j), which is not a penalty.
What happens if a central government employee switches from UPS to NPS?
The subscriber shall be eligible for the employer contribution at the rate of fourteen percent as available under NPS. The additional four percent contribution for the period during which subscriber was under UPS (before the switch facility becomes effective) shall be computed on the default investment pattern, as notified by the Authority, and credited to the NPS Account of the subscriber. Future contributions of the Central Government, after the switch facility becomes effective, will be credited to the NPS account of the subscriber, at the rate of fourteen per cent, as per the provisions of the Central Civil Services (Implementation of National Pension System) Rules, 2021, in the following month, in which, switch facility has been exercised. The subscriber may also exercise investment choices for such future contributions.
Provisions of the PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015, shall apply in respect of such subscribers. Such subscribers will not be eligible for assured payout and other benefits under Unified Pension Scheme.
Circular related to resignation of central govt employees who have opted for UPS
Department of Pension and Pensioners’ Welfare (DoPPW), Ministry of Personnel, Public Grievances and Pensions, has issued a notification, outlining the entitlement of resignation from government service in respect of Central Government employees opting for United Pension Scheme under National Pension System (NPS).
What does circular say about UPS subscribers’ entitlement after resignation?
The DoPPW circular explains that according to Rule 15 of the Central Civil Services (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025, if a Central Government employee who has opted for Unified Pension Scheme (UPS) resigns from his service, and unless his resignation is allowed to be withdrawn in the public interest by the appointing authority, he will forfeit the assured payout under the scheme.
Also read: UPS rules for VRS explained: Central govt employees seeking voluntary retirement need to serve notice period of this duration
Will such employees also forfeit accumulated pension?
The circular further says that the employee will still receive the accumulated pension wealth in their individual corpus as a lump sum payment, as per the regulations notified by the pension authority.
According to the DoPPW Office Memorandum (OM) on October 29, 2025, “Rule 15 of these rules provides for the entitlement on resignation from Government service of a Central Government servant opted for Unified Pension Scheme (UPS) under the National Pension System (NPS). The rule provides that on resignation from a Government service or a post, unless it is allowed to be withdrawn in the public interest by the appointing authority, entails the forfeiture of assured payout under Unified Pension Scheme. In such cases, the accumulated pension wealth in the individual corpus shall be payable to the subscriber in lump sum in accordance with the regulations as notified by the Authority.”
When will such UPS subscribers get their lump sum payment?
As per the circular, this payment can only be made after 90 days from the date the resignation takes effect and the employee is formally relieved from duty.
What will happen if a UPS subscriber dies within the 90-day period?
If the employee passes away within this 90-day period, the accumulated pension wealth will be paid to their legally wedded spouse, or if there is none, to their legal heirs, the circular reads.
“If the subscriber dies before the expiry of ninety days from the date the resignation becomes effective, the accumulated pension wealth in the individual corpus shall be paid to the legally wedded spouse, or, if no legally wedded spouse exists, to the legal heir(s), in accordance with the regulations as notified by the Authority,” says the circular.
What is Unified Pension Scheme (UPS)?
Unified Pension Scheme (UPS) has been introduced by the Central Government as an option under the National Pension System (NPS) for Central Government employees with effect from April 1, 2025. UPS provides assured pay out based on the prescribed conditions.
1 . Can a UPS subscriber switch to NPS at a later date?
Yes, a “one-time, one-way switch” facility is available to central government employees for reverting to the National Pension System at any time during the service of the subscriber, within following timelines:
(a) Twelve months prior to the date of superannuation.
(b) Three months prior to the deemed date of voluntary retirement.
(c) At the time of resignation or compulsory retirement under Fundamental Rule 56(j), which is not a penalty.
What happens if a central government employee switches from UPS to NPS?
The subscriber shall be eligible for the employer contribution at the rate of fourteen percent as available under NPS. The additional four percent contribution for the period during which subscriber was under UPS (before the switch facility becomes effective) shall be computed on the default investment pattern, as notified by the Authority, and credited to the NPS Account of the subscriber. Future contributions of the Central Government, after the switch facility becomes effective, will be credited to the NPS account of the subscriber, at the rate of fourteen per cent, as per the provisions of the Central Civil Services (Implementation of National Pension System) Rules, 2021, in the following month, in which, switch facility has been exercised. The subscriber may also exercise investment choices for such future contributions.
Provisions of the PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015, shall apply in respect of such subscribers. Such subscribers will not be eligible for assured payout and other benefits under Unified Pension Scheme.
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