UPS Pension – Govt employees get a golden opportunity, Deadline of UPS extended

UPS Pension – 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.

For whom is there an opportunity?

This new date will be applicable for the following people…

Existing Central Government employees who are currently covered under NPS.

Pre-retirees, who were subscribers of NPS and have retired by March 31, 2025.

Spouse of deceased retiree: Legal spouse of the deceased subscriber.

What did the government say?

The Finance Ministry stated that several positive changes have recently been made within UPS, such as the option to switch, benefits upon 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, NPS or UPS?

Both are pension plans for central government employees, but they have some fundamental differences. NPS is for those who are willing to take market risks and expect potentially higher returns. UPS is better suited for those who want a stable, fixed, and guaranteed pension and don’t want to take any risks with their financial security in old age.

Guaranteed pension

NPS: This is essentially a savings plan. Your pension amount is invested in the market (stock market, bonds). The amount of pension you receive after retirement depends on the market’s returns on your investments. There’s no guaranteed pension amount, and it depends on market fluctuations.

UPS: This is similar to the old Family Pension System (OPS). It provides a fixed and guaranteed pension upon retirement, as a portion of your last salary. Market fluctuations do not affect this pension. The pension amount is pre-determined and continues throughout your life.