UPS–NPS: There is big news for central employees. Actually, the government had issued a notification on August 25 informing that any employee who wants to come back from Unified Pension Scheme (UPS) to National Pension System (NPS) can do so. But they will get a chance to switch only once. Once again a report has come in PIB regarding this. According to this report, there are some specific conditions for switching.
The Department of Financial Services, in a press release issued on August 25, had said that a one-time one-way switch facility has been introduced for Central Government employees who have opted for UPS to revert back to NPS, subject to certain conditions.
Conditions for switching from UPS to NPS
Employees eligible under UPS can switch to NPS only once, and cannot switch back to UPS. There are some conditions for this as well, such as-
This switch must be done at least one year before retirement or three months before voluntary retirement, whichever is applicable.
The switch facility will not be admissible in cases where the punishment is expulsion, dismissal or compulsory retirement or in cases where disciplinary proceedings are pending or proposed.
Employees who do not opt for the switch within the stipulated time will remain under UPS by default.
When is the last date to switch from UPS to NPS?
You can apply to switch from UPS to NPS only till the 30th. You can switch back to the New Pension Scheme through a one-way switch. Employees who choose to remain in NPS cannot opt for UPS after September 30, 2025.
The initiative aims to provide Central Government employees with informed choices in planning for their post-retirement financial security. By opting for UPS, employees can retain the option to switch to NPS later.