Central Government employees! The Union Ministry of Personnel, Public Grievances & Pensions has cleared the air: if you opt for the Unified Pension Scheme (UPS), you will be eligible for both Retirement Gratuity and Death Gratuity.
This clarification is a huge relief, especially with all the rumors flying around. It confirms that gratuity under UPS will be just like it is for National Pension System (NPS) subscribers, following the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021.
UPS, which offers assured pension and retirement benefits, became an option under NPS for new Central Government civil service recruits starting April 1, 2025. If you’re an existing Central Government employee covered by NPS, you have a one-time chance to switch to UPS by June 30, 2025.
More Good News: Old Pension Scheme Benefits Also Available
There’s even more flexibility! The government has also stated that Central Government civil employees who choose UPS can also opt to avail benefits of the Old Pension Scheme (OPS). This applies in specific situations, such as the death of an employee, or discharge from service due to invalidation or disablement. To take advantage of this, employees choosing UPS will need to formally exercise this option with their Ministry/Department.
This move by the government aims to provide greater clarity and security for Central Government employees regarding their pension and retirement benefits.