UPS to NPS switch- The Department of Pension and Pensioners Welfare, Government of India issued an important notification in the Gazette of India on 2 September 2025. Under this, the Central Civil Services (Unified Pension Scheme – UPS Rules, 2025 has been implemented. The purpose of these rules is to regulate the service conditions of those central employees who have opted for UPS.
Now the government issued a press release on 15 September 2025, clarifying that now the employees involved in UPS will be given the option to go to NPS (National Pension System) once. This option can be used only once and once the NPS is chosen, the employee will not be allowed to return to UPS again. Let us tell you that its purpose is to give flexibility to the employees to plan their retirement financial security in a better way.
In a press release issued on 15 September 2025, the government said that UPS member employees can now switch to NPS only once. Once switched, it will not be possible to go back to UPS. For the switch, the employee will have to apply either at least one year before retirement, or three months before Voluntary Retirement (VRS).
But this facility is not available for those employees who have been removed from service, or who have been dismissed from service or have come under the purview of compulsory retirement. Also, those against whom any disciplinary action is going on or is proposed will also not be able to take advantage of this switch. Employees who do not switch during this period will remain under UPS.
What will you get if you switch to NPS?
Employees who switch from UPS to NPS will get all the benefits available under NPS. Along with this, the government will also give an additional 4% amount to their contribution, which will further strengthen their pension fund. The government believes that this option will help employees to choose their pension plan better and strengthen their retirement finances.