The government has extended the last date for central employees to switch to UPS to November 30, 2025, from September 30, 2025. In fact, out of about 23 lakh eligible employees, only one lakh had opted for UPS so far.
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UPS Switch Date Extended: The government has extended the deadline for central employees to switch to UPS to November 30, 2025, from September 30, 2025. This decision was taken after receiving requests from employees and a lukewarm initial response to the New Pension Scheme (UPS).
In fact, only 100,000 of the approximately 2.3 million eligible employees have chosen UPS so far. Previously, the deadline was June 30, 2025, which was first extended to September 30, and now it has been extended once again.
Who is eligible?
This new date will apply to the following people…
Existing central government employees who are currently enrolled in the NPS.
Pre-retirees who were NPS subscribers and retired by March 31, 2025.
Spouse of deceased retiree: The legal spouse of the deceased subscriber.
What did the government say?
The Finance Ministry stated that several positive changes have recently been made to the UPS, such as the option to switch, benefits on resignation or compulsory retirement, and tax exemptions. Therefore, it was considered necessary to provide employees with more time to understand these changes and make the right choice. This decision has been approved by the Finance Minister.
Which is better between NPS and UPS?
Both are pension schemes for central government employees, but they have some fundamental differences. NPS is for those who are willing to take market risks and potentially expect higher returns. UPS is better for those who want a stable, fixed, and guaranteed pension and are not willing to take any risks regarding financial security in old age.
Guaranteed Pension: The Biggest Difference
NPS: This is essentially a savings scheme. Your pension amount is invested in the market (stock market, bonds). The amount of pension you receive after retirement depends on the market’s return on your investment. There is no fixed guarantee of pension; it depends on market fluctuations.
UPS: This is similar to the old Family Pension System (OPS). You receive a fixed and guaranteed pension as a portion of your last salary after retirement. Market fluctuations do not affect this pension. The pension amount is fixed and will continue to be paid throughout your life.
Which is the riskiest?
NPS: The risk is higher because the pension is dependent on market returns.
UPS: The risk is lower because the pension amount is fixed and the government guarantees it.
What will you receive upon leaving your job or voluntary retirement?
NPS: If you leave your job, you receive your accumulated corpus.
UPS: According to new announcements, pension benefits can now be received upon resignation or voluntary retirement, which is a major advantage compared to NPS.
Family Protection
Both schemes provide for family pension, meaning that in the event of the employee’s death, their spouse will continue to receive the pension.
