NPS to UPS Switch Deadline: Central government employees who wish to switch from the National Pension System (NPS) to the Unified Pension Scheme (UPS) are required to exercise their option by November 30. With the deadline just around the corner, the Finance Ministry has appealed to all eligible employees and retirees to submit their applications before the deadline. The ministry has clarified that any employee or pensioner who wishes to avail the benefits under UPS must submit their request before November 30, 2025.
What is UPS?
The UPS, or Unified Pension Scheme, was notified in January 2025 and is a new alternative to the NPS for central government employees. It was implemented on April 1, 2025. The key feature of the UPS is that it offers a guaranteed inflation-linked pension. It is a contributory scheme, where the employee contributes 10% of their basic pay + DA, while the employer, the central government, contributes 18.5%. This scheme promises a more stable and predictable pension than the NPS.
How to apply for UPS?
Employees interested in joining UPS can fill out the form online. They can use the Enrollment and Claim Form available at the following link: https://npscra.nsdl.co.in Additionally, interested individuals can also apply by submitting a physical copy of the form to their CRA System Nodal Office. The Ministry of Finance has directed all Nodal Offices to process all applications in a timely manner as per the prescribed procedures.
Is UPS a part of NPS?
Yes. UPS is a scheme that operates entirely within the framework of the National Pension System (NPS). It is regulated by the Pension Fund Regulatory and Employment Regulations (PFRDA) and is available to both serving and retired employees who meet certain conditions. Under UPS, employees receive a pension of 50% of their average basic pay for the last 12 months, provided they have completed at least 25 years of service. It also includes provisions for spousal pension and gratuity.
Can you switch back to NPS after opting for UPS?
Yes. Central government employees covered under UPS can revert to NPS at a later date if they wish. This means that even after joining UPS, employees still have the flexibility to opt out in the future.
What are the benefits of UPS?
Employees who choose UPS enjoy a variety of benefits—
- Better tax benefits
- Improved provisions in case of resignation and compulsory retirement
- Eligible employees and retirees already in NPS can also transition to UPS
- Secure and stable inflation-linked pension structure
UPS is an important reform brought by the government with the aim of providing more certain and secure retirement income to the employees