Central govt employees under NPS: Last date to apply for UPS pension is June 30, 2025; What happens if you miss it
Last date to opt for UPS is June 30, 2025
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What will happen if a central government employee fails to opt for UPS by June 30, 2025?
Which category of central government employees are eligible to opt for UPS by June 30, 2025?
Who will not be subject to the June 30, 2025, deadline for opting for UPS?
Forms to submit to opt for UPS
Can a central government employee switch back to NPS after choosing UPS?
The central government launched the option of the Unified Pension Scheme (UPS) for its employees on April 1, 2025. UPS provides an assured pension contingent upon certain conditions. It guarantees a fixed pension for government employees upon retirement, unlike the National Pension System NPS ), which provides a pension amount that is not pre-fixed but is based on the corpus accumulated at retirement and the annuity purchased. In comparison, UPS offers an assured pension amounting to 50% of the average basic pay drawn over the past 12 months before superannuation for a minimum qualifying service of 25 years.However, the FAQs released by the Pension Fund Regulatory and Development Authority (PFRDA) mention that existing employees are required to choose the option to opt for UPS within three months of the date when UPS was launched.ET Wealth online provides information on the final date to choose a pension under UPS, the consequences of missing this deadline, and the eligibility criteria for opting into UPS by this date.According to the FAQs issued by the PFRDA, "Option has to be exercised within three (03) months from April 1, 2025, or within such extended timelines, if any, allowed by the central government." This is in response to a question regarding the timelines to exercise the option of UPS under NPS by an eligible existing (as of 31.03.2025) central government employee.Kinjal Champaneria, Partner at Solomon & Co. - a law firm, says, "As per the FAQs released on March 30, 2025, by the PFRDA, the period for exercising the option under UPS for the specified central government employees is within three months from April 1, 2025, i.e., until June 30, 2025, unless extended by the central government."Concurring with the view, Manmeet Kaur, Partner at Karanjawala & Co, a law firm says, "The PFRDA has introduced the Unified Pension Scheme (UPS) for employees working in the government sector. UPS became operational with effect from April 1, 2025. Government employees who are currently covered under NPS are eligible to opt for UPS. The concerned government employees may exercise this option by June 30, 2025."Some central government employees may fail to opt for UPS by June 30, 2025. What will happen in such a scenario?Kaur says, "If a central government employee fails to opt into UPS by June 30, 2025, or by any further extended date, they will continue to be governed by the provisions of the National Pension System and shall be considered to have chosen to remain under the NPS."Will they get a second chance to opt for UPS?Champaneria says, "While the FAQs do not explicitly provide for a second opportunity to opt for the scheme, they do state that the timeline for availing the UPS option may be extended at the discretion of the central government. Therefore, if such an extension is granted, eligible central government employees who missed the initial window may have a second chance to opt for the UPS."The last date to apply for UPS by June 30, 2025, is applicable for specific central government employees.The following central government employees can exercise the option to opt for UPS by June 30, 2025:a) Existing central government employees who are in service as of April 1, 2025, and are covered under NPS.b) Central government employees who retired prior to March 31, 2025, and meet the prescribed conditions - a) Superannuated after a minimum of 10 years of qualifying service or, b) Retired under Fundamental Rules 56(j) ) (which is not treated as a penalty under Central Civil Services (Classification, Control and Appeal) Rules, 1965), on or before 31st March 2025, or c) Legally wedded spouses, in cases where the subscriber has superannuated or retired and passed away prior to exercising the option for UPS.Champaneria says, "The three-month timeline (ending on June 30, 2025, unless extended) does not apply to new recruits joining central government services on or after April 1, 2025. These individuals must exercise the option under UPS within 30 days from the date of joining, unless the central government extends this timeline."Two forms, Form A1 and Form A2, are available on the Protean CRA website. Eligible central government employees must submit their applications to opt for UPS using either one of these forms.Form A1 is for newly recruited central government employees joining service on or after April 1, 2025. Form A2 is to exercise the option to opt for UPS by an eligible central government employee currently subscribed to the National Pension System. The form can be submitted online or physically to the head of office/DDO where the subscriber is employed. Subscribers are advised to retain the acknowledgement slip signed/stamped by the designated respective nodal office where they submit the application, as per the FAQs.According to the FAQs, once exercised, the option to choose UPS is final and irrevocable.
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