Central Government has issued a final call to its employees currently enrolled under the National Pension System (NPS) to consider switching to the newly introduced Unified Pension Scheme (UPS) before the June 30, 2025 deadline.
The UPS, operational since April 1, 2025, promises assured monthly pensions, enhanced family benefits, and a more secure post-retirement future—marking a significant shift in India’s public sector retirement landscape.
NPS to UPS Switch: Who Is Eligible and What’s on Offer?
All Central government employees who were in service as of April 1, 2025, and are currently covered under NPS are eligible to opt for UPS.
The scheme offers:
- Guaranteed monthly pension: 50% of the average basic pay from the last 12 months before retirement, provided the employee has completed 25 years of qualifying service.
- Minimum pension: ₹10,000 per month for those with at least 10 years of service.
- Family pension: 60% of the last drawn pension to the spouse in case of the subscriber’s death post-retirement.
- Dearness Relief (DR): Similar to DA, DR will be applicable to UPS pensions.
- Lump sum gratuity: 10% of emoluments for every completed six months of qualifying service, payable at superannuation.
How to Switch: Online and Offline Options
Employees can opt for UPS through two methods:
- Online via e-NPS portal:
- Visit eNPS portal
- Select “NPS to UPS Migration”
- Enter PRAN, DOB, and complete OTP verification
- Accept the declaration (noting the irreversible nature of the switch)
- e-Sign using Aadhaar or Virtual ID
- Download confirmation receipt
- Offline submission:
- Download Form A2 from NPS CRA website
- Submit the filled form to the respective nodal office.
Switch to UPS: Muted Response and Growing Concerns
Despite the government’s push, the response has been lukewarm.
As of mid-May, only 10,000 out of 23 lakh eligible employees had opted for UPS. The hesitation stems from ambiguities around key provisions such as:
- Death and disability benefits
- Taxation rules
- Voluntary retirement scenarios
- Treatment of divorced spouses or dependents with disabilities
- Applicability of CCS (Pension) and CCS (EOP) Rules.
Political Pushback and Demand for Extension
CPI(M) MP John Brittas has written to Finance Minister Nirmala Sitharaman, urging an extension of the June 30 deadline.
He cited unresolved issues flagged by the Confederation of Central Government Employees & Workers, arguing that employees cannot make an informed decision without clarity on critical aspects like death-in-service benefits, disability pensions, and tax implications.
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