Entitlement on Discharge from Service Due to Disablement under Unified Pension Scheme: DoP&PW Issues Clarification

Entitlement on Discharge from Service Due to Disablement under Unified Pension Scheme: DoP&PW Issues Clarification

New Delhi: Department of Pension and Pensioners’ Welfare (DoP&PW) has issued an Office Memorandum clarifying the entitlements of Central Government employees discharged from service on account of disablement under the Unified Pension Scheme (UPS), implemented under the National Pension System (NPS).

The memorandum, numbered 57/03/2022-P&PW(B)/8361(9), states that the provisions of Rule 18 of the CCS (Implementation of Unified Pension Scheme under NPS) Rules, 2025 will apply in such cases.

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According to the notification:

If a subscriber under UPS is boarded out due to disablement attributable to Government service, benefits will be provided as per the CCS (Extraordinary Pension) Rules, 2023.

In such cases, the individual corpus under UPS will be closed, and the Government’s contribution and its returns will be transferred back to the Government account. The remaining corpus will be paid to the subscriber in lump sum.

If a subscriber opts to continue under UPS benefits, the case will be handled as per PFRDA (Operationalisation of Unified Pension Scheme) Regulations, 2025.

Additionally, employees discharged due to disablement and availing UPS benefits will also be eligible for death gratuity as per Rule 22 of the CCS (Payment of Gratuity under NPS) Rules, 2021.

The DoP&PW has directed all Ministries and Departments to circulate these provisions to the concerned personnel handling pensionary matters for strict compliance.

(S. Chakrabarti)
Under Secretary to the Government of India