Last chance for central government employees to switch to UPS from NPS: What happens if you miss Sept 30 deadline?

UPS vs NPS

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I joined Prasar Bharati, a central government autonomous corporation, in 2022. I have been covered under the NPS (National Pension System) since the beginning of my service. I would now like to switch to the Unified Pension System (UPS). Can I do so, and what is the process?

Expert Advice: The Unified Pension Scheme (UPS), introduced from 1st April 2025, offers a minimum pension of Rs 10,000 on retirement (subject to a minimum service period), along with other benefits such as eligibility to withdraw up to 60 percent of the accumulated corpus tax-free. It also provides gratuity benefits to central government employees who opt for UPS.

Retired employees are entitled to receive a monthly pension equal to 50 percent of their average basic pay during the final 12 months of service, provided they have completed at least 25 years in government employment. Under this scheme, the government contributes 18.5 percent and employees contribute 10 percent of their basic salary plus dearness allowance to the pension fund.

Employees may also make partial withdrawals up to three times during their tenure after an initial three-year lock-in. Each withdrawal can be up to 25% of their own contributions and is permitted for specified needs such as purchasing a house or funding a child's education.

All central government employees who were covered under the NPS as of 1st April 2025 are eligible to switch from NPS to UPS. Employees who join central government service after 1st April 2025 must exercise their option to choose either NPS or UPS within thirty days of joining.

Anyone who has retired with a minimum of ten years of service can also opt for the UPS. In case the employee has passed away, his or her legally married spouse is also eligible to opt for UPS.

Since you were covered under the NPS as of 1st April 2025, you are eligible to switch from NPS to UPS. The last date to exercise this option is 30th September 2025.

You need to submit your option in Form A2, which can be downloaded from the Protean CRA website at www.npscra.nsdl.co.in/ups.php. Please attach the required documents along with Form A2. The form can be submitted online or physically to the Head of Office or the DDO at your place of employment.

If you do not exercise your option by the deadline of 30th September 2025, and the deadline is not extended, it will be assumed that you have opted to continue under NPS without the UPS option.

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