Good news for central government employees! Deadline to opt for UPS extended from June 30 to this date
If a person has recently become a central government employee, he/she needs to opt for the Unified Pension Scheme within thirty days of joining.
In what comes as a good news for the central government employees, the Union Ministry of Finance has extended the deadline to decide between the Unified Pension Scheme (UPS) and the National Pension System (NPS) to September 30. The current deadline has been extended by three months, which will give extra time to central government employees to decide whether to continue with the NPS or switch to the UPS.
The announcement was made through a press release that says, “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 September 30 2025 for eligible existing employees, past retirees, and the legally wedded spouses of deceased past retirees.”
Notably, the UPS pension scheme was rolled out in April, 2025. Under this pension scheme, the UPS pensioners get an assured payout and a lump sum payout after retirement. It was introduced as an alternative to the National Pension System. NPS does not offer assured pension payout. Notably, under the UPS, gratuity benefit has also been provided to the government employees.
Moreover, if a government employee switches to UPS once, the person cannot opt for UPS again. Hence, the option to switch to the UPS is irrevocable.
Following government employees can switch from NPS to UPS:
• Central government employees who are in service as of April 1, 2025
• Central government employees who have retired on or before March 31, 2025 and fulfill the following conditions: Superannuated after a service of minimum 10 years and has retired under Fundamental Rules 56(j) on or before March 31 2025.
If a person has recently become a central government employee, he/she needs to opt for the Unified Pension Scheme within thirty days of joining.