Central govt urges employees to shift to UPS before Sept 30 deadline

The Finance Ministry on Thursday urged government employees to switch to the Unified Pension Scheme (UPS) before the September 30 deadline to ensure the timely processing of their requests. The UPS, introduced as an option under the National Pension System from April 1, 2025, will offer assured payouts to central government employees.

"All eligible employees are urged to exercise their option well before the deadline to avoid any last-minute difficulties and to ensure the timely processing of their requests. Employees who choose to remain in NPS cannot opt for UPS after this date," the ministry said in a statement. 

Around 31,555 central government employees had opted for the UPS till July 20, and the last date to enrol under the scheme is September 30. 

On August 25, the Finance Ministry announced a one-time, one-way switch facility allowing central government employees who have opted for the Unified Pension Scheme (UPS) to move back to the National Pension System (NPS). "This switch facility may be exercised by UPS optees any time not later than one year prior to the date of superannuation or three months prior to the deemed date of retirement in case of voluntary retirement, as applicable," it added.

The government has extended the benefit of 'Retirement gratuity and Death gratuity' under UPS.

Further, the government employees who opt for UPS under NPS will also be eligible for the option to avail benefits under the CCS (Pension) Rules, 2021, or the CCS (Extraordinary Pension) Rules, 2023, in the event of death of the government servant during service or his discharge on the ground of invalidation or disablement.

The government has also extended tax benefits to UPS as are available to NPS under the Income Tax Act, 1961.

(With inputs from PTI)