Voluntary Retirement Under UPS: Eligibility, Notice Rules, Pension Formula and Key Deadlines Explained

The Department of Pension and Pensioners’ Welfare (DoPPW) has released a detailed clarification on voluntary retirement rules under the Unified Pension Scheme (UPS), aiming to help central government employees make informed decisions before the November 30, 2025 deadline for opting into UPS from the National Pension System (NPS). The new advisory breaks down eligibility, notice requirements, withdrawal rules, and pension calculations for those considering voluntary retirement.

Who Can Apply for Voluntary Retirement Under UPS?

According to Rule 13 of the UPS framework, only central government employees who have completed a minimum of 20 years of regular service are eligible to seek voluntary retirement. Importantly, these norms apply exclusively to employees who have already opted into UPS under NPS. Those who continue under NPS or earlier schemes are not covered by these guidelines.

Three-Month Notice Period, With Room for Relaxation

An employee must submit a three-month written notice to the competent authority before retiring voluntarily. However, the authority may reduce this period if early retirement does not affect administrative functioning. This provision allows flexibility, especially in cases where the departure of the employee does not hamper essential operations.

What Happens If the Department Does Not Respond?

The rules make it clear that silence equals approval. If no written rejection is issued before the notice period ends, the voluntary retirement becomes automatically accepted. The employee can retire on the date specified in their notice without any further formalities.

Can an Employee Withdraw a VRS Request?

Withdrawal is possible, but not unilaterally. Employees must seek written approval to withdraw their notice, and the request must reach the authority at least 15 days before the planned retirement date. Without this approval, the retirement stands.

Who Is Excluded From UPS-VRS Rules?

Some categories fall outside these norms. The UPS-VRS rules do not apply to employees retiring under the special surplus-staff VRS scheme run by the Department of Personnel and Training (DoPT).
Additionally, employees who resign to join autonomous bodies or public sector undertakings (PSUs) cannot claim benefits under these UPS VRS provisions.

How Pension Will Be Calculated Under UPS

Pension entitlement hinges on total years of service:

• Less than 25 years of service: Employees receive a pro rata assured pension, calculated in proportion to their completed service.

• 25 years or more: Employees qualify for the full assured pension under the UPS structure.

This distinction ensures that long-serving employees receive maximum benefits, while those retiring earlier still obtain a fair, proportionate pension.