An unpreceded shift has shaken the life of PSU employees! From 22nd May 2025, with stricter pension rules brought by the Central Government, it has become clear: in the case of misbehavior, you may be deprived of your job and, to wit, of a pension.
Enacted under The Central Civil Services (Pension) Amendment Rules, 2025, this controversial decision has shaken the feelings in this vast field of public-sector undertaking.
What Has Changed?
Earlier, whenever an employee joined a PSU from Central Government service and was dismissed from the PSU after some time, he was still eligible to get the pension for the previous government service.
But not that anymore.
Under the New Pension Rules
Any PSU employee dismissed on account of misconduct, indiscipline, or as a result of any disciplinary action shall stand deprived of pension altogether, including pension earned during the earlier Central Government service.
For your notice, this came into force with effect from May 22, 2025.
Tighter Rules on Medicare Eligibility
A grave contention surrounds the change: stricter eligibility requirements for accessing Medicare benefits.
What’s Changing
Currently, you must be 65 or older and have worked for 10 years in the United States, and be a citizen or a lawful permanent resident to apply for Medicare. The bill, however, seeks to explicitly exclude undocumented immigrants and restrict access to:
- U.S. citizens
- Lawful Permanent Residents
- Certain Cuban nationals
Individuals under Compacts of Free Association (agreements with Micronesia, Palau, and the Marshall Islands)
Who Will These New Rules Apply To?
The new pension regulations apply to employees who joined government service on or before 31 December 2003 and later moved to a Public Sector Undertaking (PSU).
But there are exceptions.
These Employees Are NOT Affected:
- Railway Employees
- Daily Wage Workers
- IAS, IPS, and IFoS Officers
- Employees hired after 1 January 2004
Why Post-2003 Recruits Are Safe
Is this logic clear to the reader? Employees appointed before January 1, 2004, fall under an Old Pension Scheme (OPS) or a government-trusted pension plan offering lifelong pension benefits based upon the last salary drawn.
Those appointed after January 1, 2004, are enrolled in the National Pension System (NPS), which is a market-dependent scheme with contributions being made toward pension funds by the employee and government alike.
In NPS:
- The pension being indefinite is not guaranteed.
- It is dependent upon your savings and investment returns.
- The government cannot confiscate your pension completely.