INVC NEWS
New Delhi — : The Central Government has notified a major amendment to the Central Civil Services (Pension) Rules, 2021, that will have a significant impact on Public Sector Undertaking (PSU) employees. Effective immediately, any PSU employee who is dismissed or removed due to misconduct will no longer be eligible to receive retirement benefits.
The Central Civil Services (Pension) Amendment Rules, 2025, published on May 22, mark a policy shift aimed at increasing accountability among government-linked personnel. Officials confirmed that employees terminated from service after joining a PSU will face complete forfeiture of their retirement perks.
According to the revised rules, the final decision on whether a dismissed employee loses their retirement benefits will rest with the administrative ministry overseeing the PSU. This provision gives the ministries authority to conduct reviews before enacting the forfeiture clause.
These changes are applicable to employees governed by the Central Civil Services (Pension) Rules, 2021 — specifically those appointed on or before December 31, 2003. It does not apply to Indian Administrative Service (IAS), Indian Police Service (IPS), or Indian Forest Service (IFoS) officers. Additionally, railway staff and casual/daily wage workers remain outside the scope of this amendment.
This new rule brings stricter accountability and could influence conduct standards across the public sector landscape.
