Big change in the rules of retirement of government employees! Learn new guidelines – StudyToper

The Government of India has recently made several significant changes in the rules related to retirement of government employees. These new rules will be applicable from 2025 and their aim is to provide better retirement benefits to the employees. These changes include pension scheme, retirement age, and several aspects associated with the retirement process.

Under these new rules, government employees will help in making better plans for their retirement. Also, these changes will also provide financial security after retirement to employees. Let’s know in detail about these new rules and guidelines.

New retirement rules for government employees: at a glance

Unified Pension Scheme (UPS): New Pension Scheme for Government Employees

Unified Pension Scheme (UPS) is a new pension scheme for government employees which will be applicable from April 1, 2025. The main features of this scheme are:

• Employees who have completed at least 25 years of service will get 50% of the last 12 months average salary as pension.
• There is also a provision of proportional pension for the service period less than 10 years.
• After the death of the employee as a family pension, his family will get 60% of the pension.
• The minimum pension amount has been fixed at ₹ 10,000 per month.

The purpose of UPS is to provide better financial security to government employees after retirement.

Voluntary Retirement: Option of Voluntary Retirement after 20 years of service

Under the new rules, government employees can now opt for voluntary retirement after completing 20 years of service. The main provisions for this are:

• The employee will have to give a notice of at least 3 months.
• Special requests can be made to reduce the notice period.
• Employees taking voluntary retirement will get the same benefits as regular retirement.

This provision will help employees plan retirement according to their career and life goals.

Qualifying Service Certificate: Compulsory process before retirement

According to the new rules, all government employees will have to submit the qualifying service certificate (QSC) 5 years before their retirement. The main points of this process are:

• Submission of QSC is mandatory after completion of 18 years of service.
• This process will start from January 31, 2025.
• The QSC will certify the employee’s service period and qualification.
• This will arrange all the records related to retirement.

This process will help in the smooth distribution of retirement benefits and reduce any dispute.

Online Pension Application: Simplified process in digital age

From November 6, 2024, all government employees will have to submit their pension application online. The main things of this new rule are:

• Pension application should be submitted on Bhavishya or E-HRMS 2.0 platform.
• Paper -based applications will no longer be accepted.
• The new Single Pension Application Form 6-A will be used.
• This change will make the pension process fast and transparent.

The online application process will speed up the disposal of pension cases and reduce the chances of errors.

Catch-up Contribution: Additional Savings Opportunities For Senior Employees

From 2025, catch-up contribution limit will be increased for employees aged 60–63 years. The major points of this rule are:

• The catch-up limit for the age of 60-63 years will be ₹ 11,250.
• This limit will be ₹ 7,500 for the age of 50-59 years and 64+ years.
• This change will give employees a chance to save more before retirement.

Senior employees will be able to contribute more to their retirement funds with the increased limit of catch-up contribution.

Improvement in pension withdrawal: expansion of banking facilities

From 2025, pensioners will not have to depend on a particular bank or branch to extract their pension. According to new rules:

• Pensioners will be able to remove their pension from any bank or branch of the country.
• There will be no need to transfer the pension payment order (PPO).
• The pension will be credited immediately, without any additional verification.

This change will provide more flexibility and convenience to pensioners.

Increase in minimum pension amount: step towards better standard of living

The government has proposed to increase the minimum pension amount under Employees’ Pension Scheme (EPS). The proposed changes are:

• Proposal to increase the minimum pension amount from ₹ 1,000 to ₹ 7,500 per month.
• Demand for free medical treatment for pensioners and their spouse.
• Proposal to increase dearness allowance (DA).

This growth will help pensioners to provide better standard of living.

Impact of 8th Pay Commission: Possible increase in pension

Along with the announcement of the 8th Pay Commission, a change in pension is also expected:

• The possibility of an increase of about 25-30% in pension.
• Additional allowance proposals for senior pensioners.
• Possibility of increase in inflation relief (DR).

These changes will help pensioners to deal with increasing inflation.

Possible changes in National Pension System (NPS)

There may also be some changes in NPS with the 8th Pay Commission:

• Government’s possibility of growing contribution to NPS by 14%.
• Proposal for guaranteed returns, which will reduce market risk.
• Hybrid models of Old Pension Scheme (OPS) and NPS can be developed.

These changes will make NPS more attractive and safe.

Disclaimer:

This article is only for informative purposes. Although we have tried to provide accurate information, the government rules and policies may change from time to time. Please get the latest information from official government sources before taking any important decision. Writers or publishers will not be responsible for any work done on the basis of the information given in this article.