Important information regarding the Central Government’s Unified Pension Scheme (UPS) has been revealed in the Lok Sabha. The Finance Ministry has stated that as of November 30, 2025, over 1.22 lakh employees have opted for UPS. This includes serving employees, recruits, and retired employees. This indicates that employees prefer a guaranteed benefit scheme over the National Pension System (NPS).
Surge in the Number of Employees Choosing UPS
Minister of State for Finance Pankaj Chaudhary stated that approximately 4.95% of the total employees registered under the National Pension System (NPS) have opted for the Unified Pension Scheme (UPS). The government introduced this scheme as an alternative to NPS to provide employees with more assured and stable pension benefits after retirement.
Employees are provided with a one-time switch option to opt for UPS. This option can be exercised within a specified timeframe in situations such as retirement, voluntary retirement, death, or removal from service. The government believes that as awareness about UPS increases, the number of employees joining it may increase further in the future.
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Guaranteed Benefits of the Unified Pension Scheme
Under the Unified Pension Scheme, eligible employees will receive a guaranteed monthly pension based on their average basic pay. Additionally, special provisions have been made for employees who have completed a minimum period of service and their families. Under this scheme, eligible individuals are entitled to a family pension and certain benefits for their children.
Under UPS, pensions are determined based on the average salary before retirement, and employees receive guaranteed benefits upon completing a minimum period of service. This provides a more secure option than the volatile market-based returns of the NPS.
Government Clarification on OPS
The Finance Ministry has clarified in the Lok Sabha that no proposal to restore the Old Pension Scheme (OPS) for central government employees is currently under consideration. In a written response, the Finance Ministry stated that OPS will not be implemented for employees covered under the NPS and Unified Pension Scheme (UPS).
The Ministry also clarified that although some states have voluntarily re-implemented OPS, under the existing rules and regulations, states are not permitted to return funds deposited under NPS to the central government or employees. This means that state governments can implement OPS, but there is no provision for returning NPS funds.
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