Pension Rules Change: The central government has made a major change in the pension rules and has decided that employees dismissed or removed from the Public Sector Undertaking (PSU) will no longer get retirement benefits.
This amended rule has come into effect from 22 May 2025 and is aimed at increasing discipline in government service. The decision will be reviewed by the concerned administrative ministry. These rules apply to employees appointed before 31 December 2003, but railway, IAS, IPS and IFoS officers are out of it.
There is a big news for government employees. The news is that the central government has made a big and important change in the pension rules for government employees. Now if an employee is dismissed or removed from a public sector undertaking (PSU), he will not get retirement benefits. This change has been made under the amendment in the Central Civil Services (Pension) Rules, 2021, which was recently notified on 22 May 2025.
Key provisions of the new notification
According to the new notification Central Civil Services (Pension) Amendment Rules, 2025, if an employee is working in a public sector undertaking and is dismissed or removed due to any misconduct or indiscipline, then he will not be given pension or other retirement benefits irrespective of his service period.
The ministry will review the decision
If an employee is dismissed or removed, the decision will be reviewed by the relevant administrative ministry. The ministry will decide whether the dismissal was justified and whether forfeiture of retirement benefits will apply to him.
What was the rule earlier?
Under the earlier rules, employees of public sector undertakings could get retirement benefits even in case of dismissal or removal from service. This means that their benefits like pension or gratuity remained safe. But now after this amendment, this will not be possible.
To which employees will these rules not apply?
These amendment rules will not apply to railway employees, casual and daily wage employees, IAS, IPS and IFoS officers. These rules apply only to those employees who were appointed on or before 31 December 2003 and whose services are regularly under the Central Government.
Accountability of government employees will increase
This amendment in the pension rules is a step to promote discipline and accountability for government employees. Now employees will have to pay special attention to their conduct during service because any disciplinary action can directly affect their retirement benefits.
