The Unified Pension Scheme (UPS), which guarantees a pension for central government employees, will begin on April 1. Both current and newly recruited employees will be able to apply for this new pension scheme either online or offline. The important thing is that, while applying, employees will need to choose their registered pension fund and investment pattern to ensure their deposited funds are invested properly for good returns. This system will work similarly to the National Pension Scheme (NPS).

Contribution Pattern under UPS

  1. Personal Deposit Fund: Employees will contribute 10% to this fund, with an additional 10% contribution from the government. Pension funds will manage this deposit.
  2. Pool Deposit Fund: The government will contribute an additional 8.5% to this fund, which will be invested in government schemes.

Investment Options in Personal Funds

  • Employees choosing UPS can select an investment pattern similar to NPS. They must also choose a registered pension fund.
  • If the employee does not choose an investment scheme, their funds will automatically go into the default pattern, where the funds will be invested in the schemes prescribed by the Pension Fund Regulatory and Development Authority (PFRD).

Available Investment Options:

  • The entire fund can be invested in government securities, or
  • Employees can choose one of the following life-cycle-based plans:
  • Conservative Fund: Up to 25% of the investment is in equity.
  • Moderate Fund: Up to 50% of the investment is in equity.

Partial Withdrawals Allowed

After completing three years in the UPS, members can withdraw up to 25% of their personal fund. A maximum of three withdrawals can be made during the scheme. If any withdrawal has been made under NPS earlier, it will count toward this limit. Some conditions apply for withdrawal, which members must fulfill.

Option to Choose UPS or NPS

The government has made it optional for both current and new employees to choose either NPS or UPS. Employees can opt for UPS under NPS or continue with NPS without selecting the UPS option. Once chosen, the option cannot be changed.

How to Apply for UPS

  1. For Current Employees: Employees who joined government service after January 1, 2004, and opted for NPS can choose UPS. They need to fill Form A2.
  2. For Newly Recruited Employees: New employees joining on or after April 1, 2025, can also choose this option by filling Form A1.
  3. For Retired Personnel: Retired employees who were previously under NPS can also join UPS. They need to submit Form B2 along with KYC documents.
  4. In Case of Death of Employee: If an employee passes away, the legally married spouse must submit Form B6 along with KYC documents.

How to Apply Online to Switch from NPS to UPS

  1. Visit the link: https://enps.nsdl.com/eNPS/NationalPensionSystem.html
  2. Click on “NPS to UPS Migration” under the Unified Pension Scheme menu.
  3. Enter your PRAN and date of birth, and verify by entering the captcha. This will send an OTP to your registered mobile number. Enter the OTP.
  4. A new declaration window will appear. Read and agree to it, then click “Proceed to e-Sign”.
  5. Complete the e-Sign verification by entering your Virtual ID (VID – 16-digit number) or Aadhaar details.
  6. Once the verification is successful, the transfer request will be successfully registered, and you will receive an acknowledgment number.

How to Apply Offline

  • The eligible employee must submit the appropriate form (Form A1, A2, or B2) to their office (DDO or PAO) or the concerned nodal office.
  • The DDO will verify the form against the employee’s service record and complete the request process through the CRA transaction website.