Centre Allows One-Time Switch From Unified Pension to NPS for Its Employees
The Finance Ministry allows a one-time switch from UPS to NPS, affecting over 31,000 central employees who opted for UPS by July 20, 2025, enhancing retirement benefit options.
- The Centre has introduced a one-time switch facility from the Unified Pension Scheme to the National Pension System for Central Government employees, aimed at increasing participation in UPS among 2.7 million staff members.
- Only about 1% of employees opted for UPS since its launch on April 1, prompting the government to extend the enrollment deadline to September 30, 2025.
- Employees transitioning to NPS will lose assured payouts from UPS and must exercise the switch within specific time frames relative to their retirement dates, as noted in the office memorandum dated August 25.
- Tax benefits granted to NPS have now also been extended to UPS, and those opting for UPS may avail themselves of additional benefits under various pension rules according to the government.
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Govt allows central employees to shift from UPS to National Pension System
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Centre allows one-time switch to NPS from UPS
The Centre has allowed a one-time switch from the Unified Pension Scheme (UPS) to the market-linked National Pension System (NPS) after muted staff response. With enhanced government contributions under UPS, employees weigh assured payouts against market-driven NPS returns.
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