Deadline to switch from NPS to UPS fast approaching: Check date, benefits, and top FAQs here

Central government employees seeking to switch from the National Pension System (NPS) to the Unified Pension Scheme (UPS), also must do so latest by November 30. And with the deadline just days away, the Finance Ministry has urged eligible staff to submit their requests at the earliest.

The government has urged all eligible individuals — both serving employees and past retirees under the NPS framework — to ensure that they submit their requests well before the 30.11.2025 deadline to take advantage of the benefits available under the new scheme.

What is UPS?

Notified in January 2025, UPS is a new pension alternative for central government employees who wish to switch from NPS. Implemented from April 1, 2025, it assures an inflation-indexed retirement payout.

UPS is contributory in nature, wherein employees will be required to contribute 10% of their basic salary and dearness allowance (DA) while the employer's contribution (the central government) will be 18.5%.

How can you apply for UPS?

Those interested can access the enrolment and claim forms online here — https://npscra.nsdl.co.in or can submit a physical form at their respective Central Recordkeeping Agency (CRA) system Nodal Offices.

The Finance Ministry has further directed all Nodal Offices to process applications strictly in accordance with the prescribed procedure.

Is UPS part of the National Pension System?

Yes, the Unified Pension Scheme operates within the National Pension System (NPS), regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and is applicable to both serving and retired employees under specific conditions.

UPS promises pension equal to 50% of the average last 12 months' basic pay for central government employees who have at least 25 years of service.

It also provisions for such employees a spouse pension and gratuity.

Can you switch back to NPS later?

Yes. All central government employees choosing UPS will continue to retain the flexibility to switch back to NPS at a later stage if they wish.

What are benefits under UPS?

Benefits of opting for UPS include improved tax exemptions, options for resignation and compulsory retirement benefits, and a provision for eligible employees and past retirees under NPS to transition into the new system.

(With inputs from Agencies)