Retirement & Death Gratuity for UPS Pension Scheme Employees

EXTENSION OF BENEFIT OF RETIREMENT GRATUITY AND DEATH GRATUITY TO EMPLOYEES OPTING FOR UNIFIED PENSION SCHEME (UPS) Ministry of Finance, Department of Financial Service vide its Notification No. FS-1/3/2023-PR dated 24.01.2025 had notified introduction of the Unified Pension Scheme (UPS) as an option under NPS for the recruits to the Central Government civil service w.e.f. 01.04.2025 giving one time option to the Central Government employees covered under the National Pension System (NPS) for inclusion under the Unified Pension Scheme.

Govt Clarifies Retirement & Death Gratuity Benefits for Employees Under Unified Pension Scheme

In view of the above, the Department of Pension and Pensioners’ Welfare vide its OM No. 57/01/2025-P&PW(B)/UPS/10498 dated 18.06.2025, has issued clarification that the Central Government employees opting for Unified Pension Scheme shall be eligible for benefit of ‘Retirement gratuity and Death gratuity’ under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021.  

PFRDA Notifies UPS Regulations 2025 for Central Govt Employees Under NPS

The PFRDA vide gazette notification dated 19th March, 2025 has issued PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025 (https://www.pfrda.org.in//MyAuth/Admin/showimg.cshtml?ID=3484). This follows the UPS notification dated 24^th January, 2025 by the Government of India.The government intends it for Central Government employees covered under NPS. The regulations shall come into effect from 1^st April, 2025. These Regulations enable enrolment of three categories of central government employees. The first category includes an existing central government employee. This employee is in service as on 1st April 2025. They are covered under NPS. The second category is a new recruit in the central government services. This recruit joins service on or after the 1st day of April 2025. The third category includes a central government employee. This employee had NPS coverage. They have superannuated or voluntarily retired on or before 31st March 2025. This also includes the legally wedded spouse. This applies if the subscriber has superannuated or retired and has passed away prior to exercising the option for UPS. The enrolment and claim forms for all these categories of central government employees will be available online. They can be accessed from 1^st April, 2025. You can find them on the website of Protean CRA at https://npscra.nsdl.co.in.  The employees also have the option to submit the forms physically.