The Finance Ministry has given the option to employees of the Unified Pension Scheme (UPS) to opt for the National Pension System (NPS). UPS, which will come into effect from April 1, 2025, guarantees assured payouts. The last date for enrollment is September 30. UPS beneficiaries will get the facility to switch to NPS before retirement and will also get benefits like retirement gratuity and death gratuity.
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New Delhi. The Finance Ministry on Monday announced the facility of one-time option of National Pension System (NPS) to the employees of Unified Pension Scheme (UPS). The central government has launched UPS as an alternative to NPS, which has come into effect from April 1, 2025.
In UPS, employees get a guarantee of assured payment. As of July 20, about 31,555 central employees have opted for UPS and the last date for enrollment under this scheme is September 30. The Finance Ministry said in a memorandum that the facility to switch from UPS to NPS will be available to all central government employees who have opted for UPS.
This facility can be availed by UPS beneficiaries up to one year before the date of retirement or three months before the valid retirement date in case of voluntary retirement.
Benefits of ‘Retirement Gratuity and Death Gratuity’
The government has also enhanced the benefits of ‘Retirement Gratuity and Death Gratuity’ under UPS. Additionally, government employees who opt for UPS will also be eligible to receive benefits under the CCA (Pension) Rules, 2021 or CCS (Extraordinary Pension) Rules, 2023. The government has also extended the tax benefits provided for NPS under the Income Tax Act, 1961 to UPS.
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