UPS vs NPS: Deadline to choose between Unified Pension Scheme and National Pension System extended; check details
The finance ministry has extended the deadline for central government employees to choose between the
Unified Pension Scheme
(UPS) and the
National Pension System
(NPS) by three months, from June 30 to September 30, 2025.
The move comes after various stakeholders, including employee unions and retirees' associations, sought more time to assess their options.
The UPS, which came into effect on April 1 this year, offers an assured monthly pension and a lump sum payout on retirement, unlike the NPS which does not guarantee fixed returns.
'In view of representations received from stakeholders requesting an extension of the cut-off date, the Government of India has decided to extend the cut-off date for exercising the option for UPS by three months, i.e., up to 30 September 2025 for eligible existing employees, past retirees, and the legally wedded spouses of deceased past retirees,' the inance Ministry said in a press release issued today.
Key Details:
Who can to switch to UPS?
Central government employees who were in service on or after April 1, 2025.
Retirees who retired on or before March 31, 2025, with at least 10 years of service or retired under fundamental rules not treated as penal action.
Legally wedded spouses of deceased retirees who meet eligibility criteria.
Irrevocable Option:
Once a government employee opts for UPS, they cannot revert to NPS. The choice is final.
Deadline for new recruits:
Newly recruited central government employees must choose between UPS and NPS within 30 days of joining.
Treatment of NPS Corpus:
For those who switch to UPS, their existing NPS corpus will be transferred to a PRAN (Permanent Retirement Account Number) account under UPS.
What if you missed the deadline?
According to the UPS FAQs, failure to exercise the option by the deadline would imply a default continuation under the NPS.
The government has also recently expanded benefits under UPS by extending gratuity eligibility to those opting for the scheme, further enhancing its attractiveness as a post-retirement safety net.
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