NPS To UPS Switch: Central Govt Employees Now Eligible To Opt For UPS From April 1; Know About Retirement Benefits And Migration Window

The government has introduced the Unified Pension Scheme (UPS) under the National Pension System (NPS) for central government employees. Newly recruited employees must enroll in UPS within 30 days of joining. Existing NPS subscribers now have the option to transition to UPS.  

This transition aims to offer central government employees a guaranteed pension, government contributions, and greater investment flexibility after retirement. Employees can migrate from NPS to UPS through the official CRA (Central Recordkeeping Agency) portal (https://www.npscra.nsdl.co.in/ups.php), with physical forms also available for submission. 

Migrating to UPS is optional for Central Government employees currently covered under NPS. The new scheme promises assured payouts on retirement, which is currently not available under NPS. Currently, all government employees who joined the service after April 1, 2004, are under the NPS.

Central Government employees currently under NPS have three months from April 1, 2025, to switch to UPS. If they fail to opt within the given timeframe, they will be deemed to have chosen to continue under the existing NPS framework.  

Central Government employees in service as of April 1, 2025, who are covered under NPS, as well as newly recruited employees joining on or after this date, fall under the specified category. Adding further , Central Government employees who were covered under NPS and retired on or before March 31, 2025, are also included, provided they meet certain conditions. 

These conditions include superannuation after a minimum of 10 years of qualifying service or retirement under Fundamental Rules 56(j) on or before March 31, 2025. Furthermore, the legally wedded spouse of a deceased subscriber eligible under UPS is also covered under these provisions. 

The Unified Pension Scheme (UPS) provides a 50 per cent pension based on the average basic pay of the last 12 months before retirement, provided the employee has completed at least 25 years of service. In case of the employee’s demise, their family will receive 60 per cent of the pension. Adding further, UPS ensures a minimum monthly pension of Rs 10,000 for those with at least 10 years of service. 

Employees will also receive a lump sum payment of 10 per cent of their basic pay and DA for every six months of service completed, in addition to their regular pension.