The deadline for central government employees to switch from the National Pension System (NPS) to the Unified Pension Scheme (UPS) has been extended to November 30, 2025. The Finance Ministry's decision to extend the deadline comes after a low initial response from employees covered under the NPS.

The Unified Pension Scheme (UPS) was launched on April 1, 2025, as an optional scheme for central government employees, excluding armed forces personnel, already under the NPS framework. The scheme aims to provide a more secure and assured pension payout compared to the market-linked returns of the NPS.

Reason for Extension The Department of Financial Services (DFS) under the Finance Ministry, in its communication to the Pension Fund Regulatory and Development Authority (PFRDA), stated that the extension was granted due to numerous requests from stakeholders. These requests stemmed from recent positive changes introduced in the UPS, including a switch option, benefits on resignation, compulsory retirement, and tax exemptions. The stakeholders felt that employees needed more time to fully understand these changes before making an informed decision.

Key Features of UPS The UPS is designed to offer a guaranteed pension, with a minimum pension of ₹10,000 per month. The scheme guarantees a pension amount of 50% of the average basic salary over the last 12 months before retirement for those with at least 25 years of service. Under UPS, employees are eligible for an assured, inflation-indexed pension with a guaranteed minimum payout, whereas NPS is a market-linked scheme with potentially higher pensions but also with associated risks.

Eligibility and Conditions The UPS is available to all central government employees who joined service after January 1, 2004, and are currently under NPS. Employees can switch to NPS later only once and will be unable to switch back to UPS. Employees can switch to UPS at least one year before superannuation or three months prior to voluntary retirement. Employees facing removal, dismissal, or compulsory retirement as a penalty, or those with pending disciplinary proceedings, are not allowed to switch their pension scheme.

How to Switch Eligible subscribers can initiate the shifting request through the e-NPS portal. To switch, subscribers need to go to the link https://enps.nsdl.com/eNPS/NationalPensionSystem.html and click on NPS To UPS Migration under the Unified Pension Scheme menu. Subscribers must complete e-Sign verification by submitting their Virtual Identification (VID) or Aadhaar details and entering the OTP sent to their registered mobile number.

Implications of Missing the Deadline Employees who fail to opt for UPS by November 30, 2025, will remain under the NPS by default. Missing the deadline means that employees will not have another opportunity to switch to UPS later.

The extension of the deadline provides a valuable opportunity for central government employees to carefully consider their retirement planning options and make an informed decision about whether to switch from NPS to UPS.