UPS Scheme: Govt Employees to Get Assured Pension – Know Process to Shift from NPS to UPS

There is good news for government employees. The central government has started the Unified Pension Scheme (UPS). This scheme came into effect on 1 April 2025, and now central employees have the option to join it. The main point is that in UPS, employees will get a fixed pension after retirement. In the old National Pension System (NPS), the pension was linked to the market.

What is UPS Scheme?

UPS is a fund-based pension system. In this, both the employee and the central government give a monthly contribution. After retirement, the employee will get a regular pension. The best part is that employees will get a guaranteed minimum pension of ₹10,000 per month, if they have worked for at least 10 years.

Difference Between UPS and NPS

NPS is market-based. Money is invested in shares and bonds, so the return depends on the market.

In UPS, pension is guaranteed and linked to the last salary.

In NPS, pension depends on the corpus at retirement. In UPS, a minimum pension of ₹10,000 is fixed in all cases.

Who Can Choose UPS and How to Apply

UPS is only for central government employees who joined after 1 January 2004 and are now in NPS. It is not for railway staff, daily wage workers, casual staff, All India Services officers, or contract workers. Existing employees can choose UPS till 1 October 2025. New employees who join after 1 April 2025 must give their option within 30 days.

To shift from NPS to UPS online, employees need to go to the eNPS portal, select the migration option, fill PRAN and DOB, verify with OTP, e-Sign, and confirm. After success, an Acknowledgement Number is given with the form. Remember, once UPS is chosen, it cannot be changed.

For offline, employees can fill Form A2, get it verified by their office head, and send it to DDO → PAO/CDDO → CRA. After this, PRAN will be allotted and the first contribution must be made within 20 days.

Why UPS is Important

UPS gives relief to employees who were worried about market risks in NPS. Now they will get a fixed pension every month after retirement, which gives more security.