The Ministry of Finance, Government of India, has officially notified the Unified Pension Scheme (UPS) for eligible Central Government employees through Notification No. F. No. FX-1/3/2024-PR dated January 24, 2025.
The Department of Financial Services (DFS) has emphasized that the final date for eligible employees and past retirees under the National Pension System (NPS) to opt into UPS is September 30, 2025.
All eligible individuals are strongly encouraged to exercise their option well in advance of the deadline to avoid last-minute complications and to ensure timely processing of their applications. It is important to note that employees who choose to continue under NPS will not be permitted to switch to UPS after the specified date.
Further, DFS has issued an Office Memorandum No. 1/3/2024-PR dated 25.08.2025, introducing a one-time, one-way switch facility for Central Government employees who have already opted for UPS, allowing them to revert to the National Pension System (NPS) under specified conditions:
- Eligible employees under UPS can switch to NPS only once, and cannot switch back to UPS.
- The switch must be exercised at least one year before superannuation or three months before voluntary retirement, whichever is earlier.
- III. The switch facility will not be allowed in cases of removal, dismissal, or compulsory retirement as a penalty, or where disciplinary proceedings are ongoing or contemplated.
- IV. Those who do not opt for the switch within the stipulated time will continue under UPS by default.
- Employees who choose to remain in NPS cannot opt for UPS after 30th September 2025.
This initiative aims to provide Central Government employees with an informed choice in planning their post-retirement financial security. By opting for UPS, the employees retain their choice for switch to NPS at a later date.
