Unified Pension Scheme: Last Date For Eligible Central Employees To Opt For UPS Is 30 September, Says Finance Ministry

The Ministry of Finance has set 30 September as the last date for eligible Central Government employees and retirees under the National Pension System (NPS) to opt for the Unified Pension Scheme (UPS).

According to the Department of Financial Services (DFS), employees who continue under NPS after this date will not be eligible to switch to UPS.

UPS was notified on 24 January as an alternative retirement scheme for Central Government employees.

The Finance Ministry has asked employees to exercise their choice before the deadline to ensure timely processing of applications.

In a separate Office Memorandum dated 25 August, the DFS introduced a one-time, one-way switch for employees who have already opted for UPS.

Under this facility:

• Employees may switch back to NPS only once and cannot return to UPS thereafter.

• The switch must be exercised at least one year before superannuation or three months before voluntary retirement, whichever is earlier.

• The option is not available in cases of removal, dismissal, compulsory retirement as a penalty, or where disciplinary proceedings are pending.

• Those who do not exercise the switch within the stipulated time will continue under UPS by default.

The Finance Ministry said the initiative is intended to give employees flexibility in retirement planning, while setting clear timelines for exercising their options.

Employees who remain under NPS beyond 30 September, will lose the option to join UPS, while those who shift to UPS will retain a one-time facility to revert to NPS.

Also Read: Union Cabinet Approves Unified Pension Scheme: Know All About It Here