VRS from OPS and VRS from NPS: Voluntary Retirement of NPS Employees
What about Voluntary Retirement of employees under National Pension Scheme?
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.