The Department of Pension and Pensioners’ Welfare (DoPPW) has issued a crucial clarification regarding the Unified Pension Scheme (UPS) — a retirement scheme launched for central government employees earlier this year. The new update outlines how resignation can impact your pension benefits. Here’s everything you need to know.

⚠️ 1. Resigning Could Mean Losing Pension Benefits

Under the new clarification, employees who resign from government service may lose eligibility for the assured pension benefits under the UPS. This means that voluntary resignation before retirement could nullify your entitlement to monthly pension support.

🧾 2. UPS Designed to Replace NPS for New Entrants

The Unified Pension Scheme (UPS) was rolled out to offer better retirement security compared to the National Pension System (NPS). It combines assured benefits with government contributions, aiming to provide a stable post-retirement income to central employees joining from 2024 onwards.

📅 3. Applicability: Who Is Covered?

The scheme applies to Central government employees who joined service on or after 1 april 2024, excluding those in the armed forces. Those under the previous NPS framework are not automatically migrated unless officially notified.

🧮 4. Minimum service Requirement Still Applies

To qualify for full pension benefits, employees must complete a minimum qualifying service period (usually 10 years). If you resign before fulfilling this period, you may forfeit your right to pension — though some accumulated contributions could be refunded.

🔄 5. Difference Between “Resignation” and “Voluntary Retirement”

The DoPPW clarified that resignation and voluntary retirement are not the same.

· Resignation: Leads to loss of pension benefits under UPS.

· Voluntary Retirement: Allowed after completing a specific service period, and the employee remains eligible for partial or full pension as per UPS rules.

🧠 6. What Happens to Employer Contributions?

In case of resignation, both employee and government contributions made to the UPS account may be returned as a lump sum, but without the assured pension benefits attached. This effectively reduces the long-term financial security originally promised under the scheme.

📜 7. government Advises Caution Before Taking a Step

The DoPPW has advised employees to review the implications carefully before resigning. Those considering a job change or early exit should consult their department’s HR or pension division to understand the financial consequences fully.

💬 In Summary

The latest update on the Unified Pension Scheme is a wake-up call for government employees. While the UPS offers enhanced retirement benefits, resignation before the qualifying period can erase those advantages. Staying informed and planning ahead is essential to safeguard your future pension security.

 

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