2 days ago
- Business
- New Indian Express
26K retired Central govt employees eligible to receive extra benefits under UPS
NEW DELHI: As many as 25,756 retired central government employees meet the eligibility criteria to receive additional benefits under the Unified Pension Scheme (UPS). These are employees who superannuated are deceased or retired on or before March 31, 2025, having completed ten years or more of qualifying service while covered under NPS, the government has informed parliament.
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.
