New pension rules: The central government has made significant amendments to the pension rules and clarified that employees removed from service under disciplinary action in the public sector (PSU) can now be deprived of all their retirement benefits including pension. This change has come into force from 22 May through the Central Civil Services (Pension) Amendment Rules, 2025.
According to the arrangement so far, if an employee was permanently joined the PSU from the service of the central government, and later dismissed from there, his pension earned during government service was not affected. But now due to misconduct or indiscipline, employees extracted from PSU will not get retirement benefits earned during pre -government service.
Review process will also be applicable
The final decision in such cases of dismissal from PSU will be taken only after review by the concerned Administrative Ministry. This will ensure that every case is settled on the basis of facts and justified process.
Pension can be found in some cases
The revised rules also provides that pension can be considered in some cases. For example, after better future behavior, the employee’s pension can be restored or a family pension can be given.
Also, the government can consider giving compassionate allowance on humanitarian grounds. This is given in some special condition, such as the financial condition of the employee is very bad, his family has been affected, or it is under some serious illness or compulsion.
Which will apply to the revised rule?
This amendment will be applicable to government employees who were appointed on or before 31 December 2003. But these rules will not apply to railway employees, daily salaried and IAS, IPS, IFOS officers.
Why the appointment after 2003 will not affect
Government employees appointed till 31 December 2003 were covered under Old Pension Scheme (OPS). In this, the government guarantees pension, that is, lifetime pension is available on the basis of your final salary.
However, all government employees who were appointed from January 1, 2004 come to the National Pension System (NPS). This is the Contributory Scheme. In this, both the government and the employees together contribute to a fund. There is no guarantee of pension in this, it is connected to the market.
The entire pension in OPS is received by the government, so it can close it. However, the pension in NPS is made by the employee’s own deposit and investment. It is almost impossible to seize it completely, as it is deposited in the name of the fund employee.
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