VOLUNTARY RETIREMENT FOR NPS EMPLOYEES
Pensionary benefits under NPS on Voluntary Retirement
The features and benefits under National Pension System (NPS) and the old pension scheme are independent.
Under NPS, there is a provision for voluntary retirement/exit prior to the age of superannuation, without linking it with the minimum number of 20 years of service.
As per Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, and amendments there under, the provisions for voluntary retirement/exit and the benefits available/ allowed under NPS to employees of Central Government who voluntary retires are as follows:
“3(b) where the subscriber who, before attaining the age of superannuation prescribed by the service rules applicable to him or her, voluntarily retires or exits, then at least eighty per cent out of the accumulated pension wealth of the subscriber shall mandatorily be utilized for purchase of annuity and the balance of the accumulated pension wealth, after such utilization, shall be paid to the subscriber in lump sum or he shall have a choice to collect such remaining pension wealth in accordance with the other options specified by the Authority from time to time, in the interest of the subscribers”
Further, as informed by the Department of Pension and Pensioners’ Welfare, the benefit of retirement gratuity and death gratuity has been extended to Government employees covered under NPS on the same terms and conditions as are applicable under CCS (Pension) Rules, 1972.
Recently, vide Gazette Notification dated 31.01.2019, the mandatory contribution by the Central Government for its employees covered under NPS Tier-I has been enhanced from the existing 10% of basic pay +DA to 14% of basic pay + DA.
The employees’ contribution rate would remain at the existing 10% of basic pay + DA. There is no proposal to increase the contribution to 20 per cent from 14 per cent under NPS.
This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs in a written reply to a question in Rajya Sabha today.
Source: PIB
I have join Up state govt job in dec 2005. In belongs to category of NPS.Although the advertisment no 29/03-04 publish in 2003 and 2004 respectively same. I have applied in 2004. The employeer conduct entrance exam in nov 2005 and i have join in dec 2005.my state govt adopted NPS in 1-4-2005. Does I entiteld in ops althought my advt date in year 2003-04.. Please reply me.
I joined as a central gov employee in 2014.So far I am going to complete 7yrs.I am NPS candidate.I want to know after completion of 10 to 12yrs service if I want to resignation then my queries are below
1.I will get NPS amount how much?
2.I will eligible for Gratuity benefits.
Kindly inform me.
1) At the time of V.R.S.(if approved) and as per your invested in your account & also as per index point. If you’re joining other duty it will be transferred or settled as per your age.
2) Eligible as per your service and last basic pay.
Sir,
I came to know from NPS, premature exit is applicable also You replied me that after 5 years service I am eligible for gratuity benefits,then Sir Why you mention V.R.S(if approved) Actually Sir I not understood.Kindly explain me.
After completion of 10 to 12 yrs service I can resign from service or not?
1) Gratuity Act is separate for minimum 5 years service required.
2) As per the service rules you cannot leave office as you require resignation. V.R.S is also sanctioned by office as you can not be relieved as you like. It is the Controlling Officers/Head of Offers decision.
Thank You Sir .
Then Sir what is the VRS rules for NPS employee?
Or after how many years of qualifying service I am eligible for pensions NPS?
Or after how many years of qualifying service I am eligible for all the benefits(NPS)
Kindly inform me Sir.
Minimum 20years qualifying service. As.per Rule 3 (b) NPS Regulations 2015 at least 80 percent out of accumulated pension wealth of the subscribers shall mandatory & balance of the accumulated pension weath such utilization shell be paid to the subscribers in lumsum or he/she shell have a choice to collect such remaining pension wealth in accordance with the other options specified by the Authorities from time to time in the interest of subscribers.