On October 7, 2024, the Department of Pension and Pensioners’ Welfare (DOPPW) issued an Office Memorandum highlighting the entitlements for Central Government employees covered under the National Pension System (NPS) upon their resignation. This memorandum, referenced as No. 57/03/2022-P&PW(B)/8361 (3), is set to govern the service-related matters under the NPS framework.
Key Highlights
1. Rule 14 of the Central Civil Services (Implementation of NPS) Rules, 2021
The rule specifies the entitlements for employees upon their resignation from government service. Unless their resignation is withdrawn in the public interest by the appointing authority, the employees are entitled to a lump sum and an annuity from their accumulated pension corpus, in line with the regulations by the Authority applicable to early exits from the NPS.
2. Payment Timing
The payment of the lump sum and annuity will be processed 90 days after the resignation becomes effective and the employee is relieved of their duties.
3. Exceptions
If the employee dies before the 90-day period post-resignation, the payment will be made immediately to the eligible recipient as per the regulations set by the Pension Fund Development and Regulatory Authority (PFRDA).
4. Continuing NPS Subscription
Resigned employees have the option to continue their NPS subscription with the same Permanent Retirement Account Number (PRAN) as non-government subscribers, adhering to PFRDA regulations.
Implementation and Dissemination
All ministries and departments are directed to ensure that personnel handling NPS matters are informed of these provisions for strict compliance.
This memorandum is a crucial update for NPS subscribers in the Central Government, ensuring they are aware of their entitlements and options upon resignation.
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