Unified Pension Scheme Extension: Eligibility, Procedure, and Deadlines for New Entrants

On 16-9-2025, the Pension Fund Regulatory and Development Authority (‘PFRDA’) announced an extension of the Unified Pension Scheme (‘UPS’) option for newly appointed Central Government employees. The last date to exercise the one-time option under NPS to opt for UPS is 30-9-2025.

This extension is a testament to the government’s evolving approach to workforce welfare. To help employees and stakeholders understand the scheme and its implications, here’s a breakdown of key details, eligibility criteria, and procedural guidelines.

What is Unified Pension Scheme

The Unified Pension Scheme (‘UPS’) was notified by the Ministry of Finance on 24-1-2025. It aims to offer a hybrid pension model that combines the predictability of a defined benefit with the growth potential of a defined contribution system.

Key Features of UPS:

• Guaranteed Pension based on last drawn salary and years of service.

• Voluntary contributions allowed for enhanced retirement savings.

• Flexibility to switch back to NPS at a later stage.

• Government support through contributions and regulatory oversight.

What Does the Extension Notice Say

1. This extension specifically applies to employees who joined government service during the transitional window between 1-4-2025 and 31-8-2025.

2. This one-time opportunity is available to those who had initially opted for the National Pension System (‘NPS’).

3. These employees can now choose to migrate to UPS by exercising their option on or before 30-9-2025, aligning with the deadline already set for other eligible categories under the scheme.

4. Employees who opt for UPS will retain the flexibility to switch back to NPS later.

5. By allowing employees to switch from NPS to UPS the government is promoting informed decision-making and long-term financial planning.

How to Apply for UPS

On or before 30-9-2025, the Central Government employees can opt in the given manner:

• Submit a formal request through the designated government portal.¹

• Attach proof of employment date and current NPS enrolment.

• Await confirmation and onboarding under UPS.

Why This Matters

This extension reflects a strategic shift toward empowering employees with greater control over their retirement planning. It aims to:

• Strengthen post-retirement financial security.

• Offer flexibility in pension choices.

• Encourage long-term savings discipline.

• Align pension benefits with modern employment dynamics.

What is the Difference between UPS and NPS