Notification from the Pension Fund Regulatory and Development Authority (PFRDA), dated March 19, 2025. It outlines regulations for the implementation of the Unified Pension Scheme (UPS) under the National Pension System (NPS) specifically designed for Central Government employees.

 Notification from the Pension Fund Regulatory and Development Authority (PFRDA), dated March 19, 2025. It outlines regulations for the implementation of the Unified Pension Scheme (UPS) under the National Pension System (NPS) specifically designed for Central Government employees.

Key highlights of the document include:

1. Applicability and Eligibility:

   • Applicable from April 1, 2025, for existing Central Government employees under NPS, new recruits joining after this date, and eligible retirees or their spouses who retired on or before March 31, 2025.
   • Options to enroll must be exercised within specified timelines and are irreversible once chosen.

2. Enrolment Procedure:

   • Eligible employees must submit applications through designated forms, either physically or via the Central Recordkeeping Agency (CRA) online portal.
   • Employees will be assigned or retain their Permanent Retirement Account Number (PRAN), specifically tagged for UPS.

3. Contribution and Corpus:

   • Monthly contributions by subscribers are 10% of their basic pay plus Dearness Allowance, matched equally by the Central Government.
   • An additional pool corpus is established, comprising an 8.5% government contribution and other contributions as defined.

4. Investment Management:

   • Contributions will be invested by pension funds following guidelines issued by the Central Government, with both default investment patterns and individual choices available.
   • Subscribers have options to invest in schemes like government securities or equity-based lifecycle funds.

5. Payout and Benefits:

   • Assured monthly payouts based on average last 12 months' pay, with guaranteed minimum monthly payouts of Rs. 10,000 subject to certain conditions.
   • Provisions for lump-sum payments at retirement based on length of service.
   • Family payout to spouse upon subscriber's death, equating to 60% of the subscriber’s admissible payout.

6. Partial Withdrawal Conditions:

   • Allowed after three years of enrollment, restricted to 25% of personal contributions, permissible only under specific circumstances like higher education, marriage of children, housing needs, or medical expenses.

7. Operational Roles and Responsibilities:

   • Roles clearly defined for intermediaries such as NPS Trust, CRA, pension funds, trustee banks, and custodians for smooth operationalization of UPS.

8. Regulatory and Administrative Framework:

   • Detailed guidelines on fee structures, grievance redressal, inspection, audit procedures, confidentiality obligations, and conflict of interest avoidance.

In essence, this Notification provides a comprehensive regulatory framework designed to offer secured, regulated pension benefits to Central Government employees, ensuring financial stability post-retirement under a structured investment and payout system.