The government has introduced UPS as an option under the National Pension System (NPS) for central government employees from April 1, 2025. As per data till July 20, 31,555 employees have opted for UPS and the last date for registration under the scheme is September 30.
National Pension System: The Finance Ministry has launched a one-time, one-way switch facility to move from the newly launched Unified Pension Scheme (UPS) to the National Pension System (NPS). The government has introduced UPS as an option under the National Pension System (NPS) for central government employees from April 1, 2025. UPS will provide assured payouts to employees after retirement. As of July 20, about 31,555 central government employees have opted for UPS and the last date for registration under the scheme is September 30.
Important Update for Central Government Employees!
Government has now introduced one-time, one-way switch facility from #UnifiedPensionScheme (UPS) to National Pension System (NPS). Central government employees can switch to the UPS before September 30, 2025, for assured… pic.twitter.com/UjJJjM56S9
— PFRDA (@PFRDAOfficial) August 25, 2025
The Finance Ministry said in an office memorandum that it has been decided that a one-time, one-way facility to switch from UPS to NPS will be made available to all central government employees who have opted for UPS. It said those opting for UPS can avail the facility at any time. This option can be exercised one year before the date of retirement or three months before the estimated date of retirement in case of voluntary retirement, as applicable.
What will be the benefit?
The government has provided the benefit of ‘retirement gratuity and death gratuity’ under UPS. Apart from this, government employees opting for UPS under NPS will also be eligible for the option to receive benefits under CCS (Central Civil Services) (Pension) Rules, 2021 or CCS (Extraordinary Pension) Rules, 2023, in the event of death during service or his retirement on the basis of disability or incapacity. The government has also provided tax benefits to UPS similar to NPS under the Income Tax Act, 1961.
