This month is very special for central government employees. Actually, they have to choose to shift to Unified Pension Scheme (UPS) by 30 September. Explain that recently the Finance Ministry has appealed to the central employees to choose to shift to Unified Pension Scheme (UPS) before the last date of 30 September, so that their requests can be processed on time.
What is detail
Since 1 April 2025, the government has implemented UPS as an option under the National Pension System (NPS). UPS will provide assured pension payment to employees. The ministry said that the last date for choosing UPS option has been fixed on 30 September 2025. This facility can also be taken by eligible employees and retired employees under NPS.
According to the ministry, “All eligible employees are requested to choose their option before the last date, so that there is no problem in the last time and their requests can be processed on time. Employees who will choose to stay in NPS, they will not be able to choose the option of UPS after this date.”
Big update on Unified Pension Scheme (UPS)
As of July 20, around 31,555 central government employees have chosen UPS. The last date for enrollment in this scheme has been fixed on 30 September 2025. At the same time, on August 25, the Finance Ministry made a major change and announced that one-time, one-way switch facility will be made available from UPS to NPS. The ministry said- “It has been decided that all central government employees who have chosen UPS will be given a one-time facility to return from UPS to NPS.”
This facility can only be taken on the following conditions:
At least 1 year ago from supernues (retirement age). Or the estimated retirement in terms of voluntary retirement (VRS) up to 3 months before the date. In this way, employees have also been given flexibility that they can return to NPS if needed.
Retirement and tax benefits also available under UPS
The government has also announced to provide benefits of ‘retirement gratuity and death gratuity’ to employees under Unified Pension Scheme (UPS). In addition, government employees who choose UPS under NPS will also be able to take benefits of CCS (Pension) Rule, 2021 or CCS (Exceptional Pension) Rules, 2023:
• The employee dies during service.
• The employee should be freed from service on the basis of being invalid or disabled.
The government has also ensured that tax benefits on investment in UPS will be similar to NPS, as given under the Income Tax Rules, 1961. This will give full benefit of pension, gratuity and tax benefits to employees choosing UPS.