The National Pension Scheme (NPS) was first introduced in January 2004. It was a retirement plan for government employees. In 2009, it saw an amendment and was opened to everyone, including private employees. NPS is a long-term voluntary pension scheme designed for employees, public or private, to create a retirement fund. It is run by both the government and the Pension Fund Regulatory and Development Authority (PFRDA). Now, in its new guidelines, it has mentioned that central employees can opt for voluntary retirement under NPS.
The Department of Pension and Pensioners’ Welfare (DoP&PW), under the Minister of Personnel, has shared that all employees joining NPS under the rules of Central Civil Services 2021 will be given this facility. Employees opting for voluntary retirement under Rule 12 of the Service Rule will be allowed to retire after a certain period and they will be eligible to be paid a pension under the NPS rules.
Under this rule, a provision has been made that the central employees who come under NPS can retire voluntarily anytime after completing 20 years of service. This means that employees joining the job at any time will get the facility of voluntary retirement after completing 20 years of continuous service.
The guidelines mention that any employee who wants to take a voluntary retirement has to inform about this in writing at least three months in advance. The employer cannot reject the application of the employees taking voluntary retirement. It will be effective from the day when the three-month notice period given to the employer will end.
Meanwhile, the government will provide all the facilities to the employees who will opt for voluntary retirement determined by the Pension Fund Regulatory and Development Authority (PFRDA). All these facilities will be the same as those given to the employees after regular retirement. It should be noted that if the employee has opened any other NPS account, then PFRDA has to be informed about this.
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