NPS to UPS Update: If you are a pension holder, this news could be very important for you. New information has been revealed in the Lok Sabha regarding the Central Government’s Unified Pension Scheme (UPS). The Finance Ministry has stated that as of November 30, 2025, over 1.22 lakh employees have opted for the scheme. This includes existing employees, newly appointed employees, and retired employees.
Minister of State for Finance Pankaj Chaudhary stated that approximately 4.95% of the total employees enrolled in the National Pension System (NPS) have opted for UPS. The government has introduced UPS as an alternative to NPS to provide employees with a more secure and fixed pension after retirement.
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Employees are allowed to switch to UPS
UPS offers a one-time switch option. This means that employees can choose to switch from NPS to UPS within a specified timeframe. This option can be exercised in situations such as retirement, voluntary retirement, death during service, or dismissal. Under this scheme, eligible employees will receive a guaranteed monthly pension based on their average basic pay. Additional protection is also provided for those who complete a minimum period of service.
UPS also has provisions for families. In eligible cases, the family will receive a family pension and children will receive fixed benefits. The government believes that as awareness about this scheme increases among employees, the number of people joining UPS will also increase.
Government’s stance on OPS is clear
The Finance Ministry has also clarified in the Lok Sabha that there is currently no proposal to reintroduce the old pension scheme (OPS) for central government employees. In a written reply, the ministry stated that OPS will not be applicable to employees who are covered under the NPS or UPS.
The government has also clarified this. While some states have re-implemented OPS on their own, the current rules mandate that funds deposited under NPS cannot be returned to either the central government or employees. This means that state governments can implement OPS, but there is no provision for returning the NPS corpus.
The central government reiterated that UPS has been introduced as an alternative to NPS, offering benefits such as assured pension, minimum pension, and family pension. Under UPS, pension is determined based on the average pre-retirement salary, and employees receive fixed benefits upon completing a specified period of service.