UPS for eligible Central Government employees was notified by the Ministry of Finance, Government of India vide Notification No. F. No. FX-1/3/2024 PR dated 24.01.2025.
National Pension System: The option to migrate from the National Pension System (NPS) to the Unified Pension Scheme (UPS) has been discontinued for government employees effective December 1, 2025. The last date for migrating from the NPS to the UPS was November 30, 2025. The government had previously given its employees several opportunities to choose between the NPS and UPS, and the deadline was also extended. The option to choose UPS over NPS was available to government employees who joined service between April 1, 2025, and August 31, 2025.
UPS was notified in January this year
The government notified UPS in January this year. The Ministry of Finance, Government of India, notified UPS for eligible central government employees through Notification No. F. No. FX-1/3/2024 PR dated January 24, 2025.
What is UPS?
UPS is a pension scheme launched by the Government of India, effective April 1, 2025. This scheme is available to central government employees as an option under the National Pension System (NPS). It is designed to provide assured, inflation-indexed, and adequate retirement benefits, addressing concerns about long-term financial security and pension predictability.
UPS requires an employee contribution of 10% of their basic salary and DA.
Employees contribute 10% of their basic salary and dearness allowance (DA), while the employer (central government) contributes 18.5%.
There was an option to switch to NPS even after opting for UPS.
This initiative aims to provide central government employees with an informed choice in planning for their post-retirement financial security. By opting for UPS, employees could later revert to NPS.
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