Pension New Rules: Government employees will not be able to do as they please! If you are dismissed, you will have to lose your pension.

New pension rules: The government has changed the pension rules. According to the new rules, if a PSU employee is dismissed or removed due to any indiscipline or wrong conduct after joining the service, then the retirement benefits he gets will be forfeited.

New pension rules: The central government has made an important decision for the employees working in the Public Sector Undertaking (PSU). Now if a PSU employee is dismissed or removed due to any indiscipline or wrong conduct after joining the service, then the retirement benefits he gets will be forfeited. This decision has been taken under the Central Civil Services (Pension) Amendment Rules, 2025, recently notified by the Central Government.

What is the new pension rule?

According to the new rules notified by the Ministry of Personnel, if an employee is removed or dismissed from the job due to any misconduct in future after being adjusted in a Public Sector Undertaking (PSU), then the retirement benefits earned during his government service period will also be confiscated. This amendment was notified on 22 May 2025.

However, the decision of termination, dismissal or retrenchment of an employee will be subject to review by the administrative ministry supervising that PSU.

What was the rule earlier?

The earlier rules did not have a provision that the government service benefits of the employee could also be confiscated in the event of dismissal under disciplinary action after adjustment in a PSU.

Along with this, provisions like "Pension and Family Pension based on Good Conduct" and "Compassionate Allowance" will also be applicable for the dismissed or removed employees under the new rules.

The Central Civil Services (Pension) Rules, 2021 apply to government employees who were appointed on or before 31 December 2003. However, it does not include railway employees, temporary and daily wage employees, and IAS, IPS and IFoS officers.