The Department of Pension and Pensioners’ Welfare (DoP&PW) has outlined how compulsory retirement, dismissal, or removal from government service affects the National Pension System (NPS) corpus for central government employees, a recent office memorandum dated October 11 revealed.
The memorandum states that the Central Civil Services (Implementation of NPS) Rules, 2021 govern the matters related to Central Government civil employees under the NPS. Specifically, Rule 18 addresses the consequences of compulsory retirement or removal on an employee’s accumulated pension corpus.
According to this rule, if a central government employee covered under the NPS is compulsorily retired, dismissed, or removed, their lump sum payment and annuity from the accumulated pension corpus will be provided in line with regulations from the Pension Fund Regulatory and Development Authority (PFRDA).
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This payment will follow the procedures applicable when a subscriber exits the NPS before retirement.
Employees have the option to continue contributing to the NPS with the same Permanent Retirement Account Number as non-government subscribers, based on the authority’s regulations.
It’s important to note that these provisions do not affect any actions related to gratuity and other retirement benefits not covered by these rules; those will follow existing regulations.
The DoP&PW has requested that all ministries and departments share this information with personnel handling NPS matters to ensure proper implementation.
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