Govt allows central employees to shift from UPS to National Pension System
Tax benefits similar to those available under NPS have been extended to UPS.
Tax benefits similar to those available under NPS have been extended to UPS.
Tax benefits similar to those available under NPS have been extended to UPS.
New Delhi: The Finance Ministry has announced a one-time, one-way switch facility for central government employees to move from the newly introduced Unified Pension Scheme (UPS) to the National Pension System (NPS).
The government rolled out the UPS on April 1, 2025, as an option under NPS, offering assured payouts to central government staff. So far, around 31,555 employees have opted for the scheme as of July 20. The last date for enrolment is September 30.
In an office memorandum, the ministry said the switch facility will be available to all central government employees who have chosen UPS. The option must be exercised no later than one year before superannuation or three months before the deemed date of voluntary retirement, as applicable.
The government has extended the benefits of retirement gratuity and death gratuity under UPS. Employees covered under the scheme will also be eligible for benefits under the CCS (Pension) Rules, 2021 and CCS (Extraordinary Pension) Rules, 2023, in cases of death, invalidation, or disablement during service.
Additionally, tax benefits similar to those available under NPS have been extended to UPS under the Income Tax Act, 1961.
(With PTI inputs)