UPS Update: The Unified Pension Scheme (UPS) was implemented by the government to provide benefits to central government employees. This scheme was rapidly gaining popularity among the public. In light of this, the government informed Parliament that as of November 30, 2025, a total of 122,123 central government employees had chosen UPS over the National Pension System (NPS). This includes recruits, existing employees, and retired employees. This information was provided by Minister of State for Finance Pankaj Chaudhary in a written response to a question from Lok Sabha MP Janardan Singh Sigriwal.
Option to Return to NPS
Employees who choose UPS have also been given a special privilege. The Finance Minister stated that employees will have the option of a ‘one-time switch’, meaning they can switch from UPS to NPS. Certain conditions were imposed for this. In case of retirement, this option must be exercised at least 12 months in advance. It can be opted for voluntary retirement (VRS) up to three months before retirement. This option is also available when leaving a job through resignation or compulsory retirement. Keep in mind that if an employee is dismissed or receives compulsory retirement as a penalty, they will not be eligible to return to NPS.
Learn about the deadline for opting for UPS
The Unified Pension Scheme came into effect on April 1, 2025. The initial deadline for opting for it was June 30, 2025, which was extended to September 30 and then to November 30, 2025, for employee convenience. The aim was to provide UPS benefits to as many employees as possible. If the government changes its mind, the date can be extended.
Pension Guarantee and Rules
Last year, Minister of State Pankaj Chaudhary clarified in Parliament the calculation of pension under UPS. He stated that the Central Civil Services Rules, 2025, apply. Employees who complete 25 years of service will receive a pension of 50% of their average basic pay for the 12 months preceding retirement. Employees who have served for 10 to 25 years will receive a pension based on their tenure, but the minimum pension is guaranteed at ₹10,000 per month.
Family Pension Information
If a UPS employee dies, their legally married spouse will receive 60% of the pension as a family pension. Children will not receive any share of this 60% family pension, and there are no optional child benefits under UPS.
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