Finance Ministry pushes govt employees to shift to Unified Pension Scheme, allows physical form submission for opt-in request

Unified Pension Scheme

The Finance Ministry has advised central government employees to use the option to migrate to the Unified Pension Scheme (UPS) well ahead of the September 30 deadline. The ministry has cautioned that those who miss the cut-off will have to remain under the National Pension System (NPS).

UPS, which comes into effect from April 1, 2025, has been offered as an alternative within NPS. It promises assured pension payouts, reports said. The ministry said that to avoid last-minute bottlenecks, employees should complete the switch at the earliest.

Moreover, the employees who are unable to submit their requests through the Central Recordkeeping Agency’s (CRA) online platform due to technical or other reasons have also been allowed to file physical forms with their designated nodal offices before the deadline.

As of July 20, around 31,555 employees had opted for UPS. The government has also allowed a one-time, one-way switch back to NPS, provided it is done at least one year before superannuation or three months prior to voluntary retirement.

Under UPS, government staff will continue to be eligible for retirement and death gratuity benefits. In addition, those choosing the scheme will retain the option to access entitlements under the Central Civil Services (Pension) Rules, 2021, or the Central Civil Services (Extraordinary Pension) Rules, 2023, in cases of death during service or discharge due to invalidation or disability.

The ministry further clarified that tax benefits available under the Income Tax Act, 1961 for NPS subscribers will also extend to UPS participants.