Voluntary Retirement of NPS Employees via OPS & NPS VRS
VRS, or Voluntary Retirement Scheme, is a program offered to employees of both OPS and NPS. The program allows employees to voluntarily retire from their positions, providing them with various benefits and incentives. Specifically, the VRS from NPS, which stands for National Pension System, provides eligible employees with the opportunity to retire from their jobs while still receiving a pension. Similarly, the VRS from OPS, or Other Pension Scheme, offers employees of various government organizations the chance to retire early and receive a pension. These programs aim to provide employees with a flexible option for retiring, while also helping to manage the workforce and maintain organizational efficiency.
What about Voluntary Retirement of employees under National Pension Scheme? or Is Voluntary Retirement eligible for NPS Employees?
There is no service period restriction for the employees under NPS compare to Old Pension Scheme. OPS employees only can apply VRS after completion of 20 years of service.
But, there is a provision to allow VRS for NPS employees. 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 mandatory 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”
Retirement Gratuity and Death Gratuity applicable for NPS Employees?
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.
What is VRS?
VRS stands for Voluntary Retirement Scheme. It refers to a scheme where employees can choose to retire from their current positions voluntarily.
What is OPS?
OPS stands for Old Pension Scheme. It is a pension scheme that was applicable to certain government employees before the introduction of the National Pension System (NPS).
What is NPS?
NPS stands for National Pension System. It is a pension scheme introduced by the Government of India for its employees.
Can NPS employees opt for VRS?
Yes, NPS employees can opt for VRS if they meet the eligibility criteria set by their respective organizations.
Is there any difference between VRS from OPS and VRS from NPS?
Yes, there is a difference. In VRS from OPS, employees who are covered under the old pension scheme will be entitled to receive a pension and other retirement benefits as per the rules of that scheme. On the other hand, in VRS from NPS, employees who are covered under the National Pension System will receive a lump sum amount based on their contributions and the returns earned on those contributions.
Are there any eligibility criteria for VRS from NPS?
Yes, each organization may set its own eligibility criteria for VRS from NPS. These criteria may include factors such as minimum years of service, age of the employee, etc.
What are the benefits of opting for VRS from NPS?
The benefits of opting for VRS from NPS include receiving a lump sum amount based on the employee’s contributions and the returns earned on those contributions, and the flexibility to utilize the amount received as per the employee’s choice.
Can NPS employees avail VRS at any time?
No, NPS employees can avail VRS only when their respective organizations announce a VRS scheme. The availability of VRS from NPS is subject to the discretion of the organization.
Can NPS employees opt for VRS if they have not completed the minimum years of service?
The eligibility criteria for VRS from NPS may vary from organization to organization. Some organizations may allow employees to opt for VRS even if they have not completed the minimum years of service, while others may have a minimum service requirement.