The central government has launched a big facility for its central employees. Now the employees who are members of the Unified Pension Scheme (UPS), they will once have the option to convert to the National Pension System (NPS). This change will be applicable from September 2025. The Department of Pension and Pensioners Welfare published Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System) Rules, 2025 in the official India Gazette on 2 September 2025. The objective of these rules is to provide the employees involved in the UPS to switch to the NPS.
These necessary conditions are for switch
The government said in the press release issued on 15 September 2025 that the members of UPS can now be converted into NPS only once. Once switched, it will not be possible to go back to UPS. The employee for the switch will either have to apply at least one year before retirement, or three months before the volunteer retirement (VRS).
But this facility is not for those employees who have been fired from service, or who have come under the purview of dismissal or compulsory retirement from service. Also, on which any disciplinary action is going on or proposed, they will not be able to take advantage of this switch. Employees who do not switch during this period will remain under UPS.
What will be available when switching to NPS?
Employees who switch to NPS from UPS will get all the benefits received under NPS. Also, the government will give an additional 4% amount to their contribution, which will strengthen their pension fund. The government believes that this option will help employees to choose their pension scheme better and strengthen their retirement finance.
UPS was implemented in April
It is worth noting that UPS i.e. Integrated Pension Scheme was approved by the cabinet on 24 August 2024 and it was implemented from 1 April 2025. UPS is actually an expansion of NPS, in which employees are given better options under the Integrated Pension Scheme.
In the new rules, the process of enrollment for UPS, arrangement of contribution, matter of compensation in case of delay, and benefits in the event of death or disability are also clearly explained. Also, rules include benefits on different retirement forms such as premature retirement, volunteer retirement, transfer in PSU or Autonomous body.