New Pension Rules: Pension rules have become strict for PSU employees. Now not only the job but also the entire pension can be lost due to misconduct. The new rules have come into effect from May 22. Know the full details.
New Pension Rules: The Central Government has made important amendments in the pension rules and clarified that employees who are 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 effect from May 22 through the Central Civil Services (Pension) Amendment Rules, 2025.
As per the system till now, if an employee joined a PSU permanently from the Central Government service, and was later dismissed from there, then the pension earned during his government service was not affected. But now the employees removed from PSU due to misconduct or indiscipline will not get the retirement benefits earned during the previous government service.
Review process will also be applicable
In such cases of dismissal from PSU, the final decision will be taken only after review by the concerned administrative ministry. This will ensure that every case is dealt with on the basis of facts and fair process.
Pension can be given in some cases
The amended rules also have a provision that pension can be considered in some cases. Such as after better future behavior, the employee’s pension can be restored or family pension can be given.
Also, the government can consider giving allowance on humanitarian grounds (Compassionate Allowance). This is given in certain situations, such as the financial condition of the employee is very bad, his family has been affected, or he is in some serious illness or compulsion.
On whom will the amended rule apply?
This amendment will apply to such government employees who were appointed on or before 31 December 2003. But these rules will not apply to railway employees, daily wage earners and IAS, IPS, IFoS officers.
Why will there be no impact on appointments after 2003
Government employees appointed till 31 December 2003 were covered under the Old Pension Scheme (OPS). In this, the government guarantees pension, that is, you get lifelong pension based on your last salary.
But, all government employees appointed from 1 January 2004 come under the National Pension System (NPS). This is a contributory scheme. In this, both the government and the employee contribute together to a fund. There is no guarantee of pension in this, it is linked to the market.
In OPS, the entire pension is given by the government, so it can stop it. But, in NPS, the pension is made from the employee’s own deposits and investments. It is almost impossible to completely seize it, because that fund is deposited in the name of the employee.
