If you are a central government employee, this update is important for you. The Department of Pensions
and Pensioners’ Welfare has issued a new notification under the CCS (UPS Rules 2025).
According to the new rules, employees covered under the New Pension Scheme (NPS) can now take Voluntary Retirement Service (VRS) after completing 20 years of service. However, they will get the full pension payout only after 25 years of service.
Key Changes in the Rules
VRS after 20 years: Employees are allowed to take voluntary retirement after completing 20 years of service.
Full payout after 25 years: To receive the full pension amount, employees must complete 25 years of service.
Pro-rata pension before 25 years: If someone retires before 25 years but after 20 years, they will not get the full payout. Instead, they will receive a pension in proportion to the years they served.
For example:
If an employee retires after 22 years, they will get 22/25 (88%) of the full pension amount.
However, this payment will only start when they reach their normal retirement age (superannuation).
Official Statement from the Ministry
The Ministry of Personnel, Grievances and Pensions clarified:
Under the Unified Pension Scheme (UPS), employees can choose VRS after 20 years.
The full assured payout will be available only after completing 25 years of qualifying service.
Employees retiring between 20–25 years will get pension benefits on a pro-rata basis, calculated as per the years of service.
