NPS to UPS Switch: Govt urges NPS subscribers to opt for Unified Pension Scheme before Nov 30 deadline

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With just a few days left for Central Government employees and eligible National Pension System (NPS) subscribers to switch to the Unified Pension Scheme (UPS), the Ministry of Finance has issued a reminder for its subscribers to submit their applications by November 30, 2025.

The UPS was formally notified on January 24, 2025 (Notification F. No. FX-1/3/2024-PR). The scheme offers a redesigned pension framework for Central Government employees and as the deadline approaches, officials have urged all eligible employees, including past retirees covered under NPS, to act promptly to avail the new scheme’s benefits.

Eligible subscribers can submit their request through either mode:

Online via the CRA system, or Offline through a physical application submitted to their respective Nodal Offices.

The requests will be processed by the Nodal Offices by following the procedure laid out in the notification.

The Unified Pension Scheme introduces several features aimed at providing greater security and flexibility. Key benefits include:

• It gives an option to switch from NPS to UPS
• The scheme provides tax exemptions under the revised structure
• Subscriber gets improved benefits in cases of resignation or compulsory retirement
• Additional provisions tailored to long-term financial stability.

Importantly, the UPS also allows employees to switch back to NPS at a later stage, eventually offering flexibility to adapt to changing financial goals.

All Central Government employees and retirees who were previously under NPS and are eligible for UPS have been advised to complete the process at the earliest. Delays beyond November 30, 2025, will result in the loss of the option to opt in.

As the deadline nears, employees are encouraged to review the benefits of the UPS carefully and ensure their applications—whether online or physical—are submitted on time to avoid last-minute hurdles.

Introduced by the government of India, UPS is a pension scheme. It came into effective on 1st April 2025, as an option under the National Pension System (NPS) for Central Government employees. Significantly, UPS operates within the existing NPS architecture regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and is applicable to both serving and retired employees under specific conditions.