There is some big relief news for government employees. The central government has recently notified the Unified Pension Scheme (UPS), which has come into effect from April 1, 2025. This scheme is for those employees who were in the market-linked National Pension System (NPS) and were worried about their future. Now, by getting the option to join UPS, they will get a fixed and guaranteed pension after retirement. Let us know what UPS is, how it is different from NPS, and how you can join it.
What is the Unified Pension Scheme (UPS)
UPS (Unified Pension Scheme) is a fund-based pension scheme. In this, the contribution of both the employee and the central government is deposited every month. After retirement, the employee gets a regular pension. The biggest feature of this scheme is that it will get a guaranteed pension of at least ₹ 10,000 every month, provided the employee has served for at least 10 years.
What is the big difference between UPS and NPS
The main difference between UPS and NPS is in their nature. In NPS, pension is linked to the market, and its return depends on the fluctuations of the market. There is no minimum guarantee in this. On the other hand, the pension in UPS is fixed and guaranteed, and it is linked to your last salary. In this, you get a guarantee of a minimum pension of ₹ 10,000, which reduces the risk a lot.
Who can choose UPS
UPS is only for those central employees who have been appointed after 1 January 2004 and who are currently in NPS. This scheme is not for railway employees, daily wage laborers, contract employees, or officers of All India Services. Existing employees can choose UPS till 1 October 2025. At the same time, new employees who will join after 1 April 2025 will have to give this option within 30 days of joining. Once UPS is chosen, it cannot be changed.
How to switch from NPS to UPS online
The government has made this process very easy. You can do this in a few easy steps by visiting the eNPS portal:
First, go to the eNPS portal.
Select the ‘NPS to UPS Migration’ option.
Enter your PRAN number and date of birth.
Complete the verification with OTP.
Read the declaration and e-Sign.
Verify by entering the OTP received from your Aadhaar number or VID.
When the process is successful, you will get an Acknowledgement Number, and you will be able to download the form. If you are not able to do it online, you can also apply by filling out Form A2. This scheme is a big relief for those employees who were feeling insecure about their future due to the fluctuations of the market. Now they will get a guaranteed fixed income after retirement.