Good News for Central Govt Employees under Unified Pension Scheme: Retirement & Death Gratuity Benefits Extended to UPS
Gratuity Benefits Extended to UPS
Order Date: 18th June 2025
OM No.: 57/01/2025-P&PW(B)/UPS/10498
Issued by: Department of Pension & Pensioners’ Welfare, Government of India
The Department of Pension and Pensioners’ Welfare (DoPPW) has officially extended a major benefit to Central Government employees covered under the Unified Pension Scheme (UPS) — they will now be eligible for Retirement Gratuity and Death Gratuity, just like their counterparts under other pension systems.
What’s the Unified Pension Scheme?
The Unified Pension Scheme was introduced via a Ministry of Finance Notification dated 24.01.2025 as an optional upgrade for Central Government employees who were originally covered under the National Pension System (NPS). The scheme came into effect on 1st April 2025 and offered a one-time option for eligible employees to switch over.
What’s Been Clarified in This Office Memorandum?
The Office Memorandum dated 18th June 2025 now confirms that:
- Employees who have opted into the Unified Pension Scheme are entitled to Retirement Gratuity and Death Gratuity.
- These benefits will be provided under the Central Civil Services (Payment of Gratuity under NPS) Rules, 2021.
- This move brings financial protection and social security in line with what many employees had been hoping for.
Departments Consulted
This decision has been made:
In consultation with the Department of Expenditure, Ministry of Finance (ID Note dated 03.06.2025).
And for those working in the Indian Audit and Accounts Department, the Comptroller and Auditor General of India (CAG) has also been consulted, as required under Article 148(5) of the Constitution.
Why This Matters
This is a significant reform for government employees under NPS who chose to switch to the Unified Pension Scheme. It ensures that they are now covered under gratuity provisions, offering greater financial security to their families in the event of retirement or unfortunate demise.
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