26K retired Central govt employees eligible to receive extra benefits under UPS
As of July 20, 2025, the government has already received 7,253 claims for UPS benefits, with a swift processing rate seeing 4,978 claims successfully processed for payment. This indicates a growing uptake of the scheme among eligible beneficiaries.
UPS is specifically introduced as an option under NPS for Central Government employees. There are currently no proposals under consideration to extend these benefits to other pension schemes or sectors, Finance minister Nirmala Sitharaman told Lok Sabha on Monday.
Responding to representations from employees and various associations, the government previously extended the cut-off date to opt for UPS by three months, until September 30, 2025. This extension provides more time for eligible individuals to make their decision.
The finance minister said that the government has moved to enhance the financial security of UPS beneficiaries. It has extended the benefit of 'Retirement gratuity and Death gratuity' under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021, to Central Government employees covered by UPS.
The finance minister also clarified that the government has ensured parity in taxation, extending the same tax benefits to UPS as are available to NPS under the Income Tax Act, 1961.
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