The UPS, launched on April 1, 2025, as an option under the NPS for central government employees, assures fixed payouts after retirement.
New Delhi: The finance ministry on Monday allowed a one-time, one-way switch facility from the newly introduced Unified Pension Scheme (UPS) to the National Pension System (NPS).
The UPS, launched on April 1, 2025, as an option under the NPS for central government employees, assures fixed payouts after retirement. As of July 20, around 31,555 employees have enrolled, with September 30 as the last date for opting in.
According to an office memorandum, employees who chose UPS may switch to NPS any time up to a year before superannuation or three months before voluntary retirement.
The government has also extended retirement and death gratuity benefits under UPS, while employees enrolled in UPS will remain eligible for benefits under the CCS (Pension) Rules, 2021, and the CCS (Extraordinary Pension) Rules, 2023, in case of death, invalidation, or disablement.
Tax benefits available under the Income Tax Act, 1961, have also been extended to UPS, bringing it on par with NPS.
