Here’s some good news for central government employees. The Ministry of Finance has extended the deadline for choosing between the Unified Pension Scheme (UPS) and the National Pension System (NPS). The previous deadline of 30 June 2025 has now been extended to 30 September 2025. This three-month extension will give employees more time to decide whether they want to opt for UPS or stay with NPS. The announcement was made via an official press release on Monday.
“Stakeholders Requested Extension”
According to the press release, “Several stakeholders had requested an extension of the deadline. Considering this, the government has decided to extend the option period by three months. Now, eligible serving employees, retired employees, and legally married spouses of deceased retired employees can make their choice until 30 September 2025.”
The Unified Pension Scheme came into effect on 1 April 2025. It offers beneficiaries a guaranteed monthly pension and a lump sum amount at retirement. It was introduced as an alternative to the NPS. In contrast, NPS does not guarantee a fixed pension. Recently, government employees opting for UPS were also made eligible for gratuity benefits.
Also Read-: What is Family Pension? Here is Who can Get its Benefit!
Important Details
If a government employee does not opt to switch to UPS, it will be assumed that they have chosen to remain with NPS by default. Also, once a government employee chooses UPS, they cannot switch back to NPS. The choice to move to UPS is final and irreversible. Once the choice is made, the pension fund will be transferred to the PRAN (Permanent Retirement Account Number) tagged under UPS.
Who is Eligible to Switch from NPS to UPS?
The following categories of central government employees are eligible to opt for UPS:
A) Existing central government employees who are in service as of 1 April 2025.
B) Employees who retired on or before 31 March 2025, provided they meet the following conditions:
- They retired after completing a minimum of 10 years of service.
- They retired on or before 31 March 2025 under Fundamental Rule 56(j) (which is not treated as a penalty under the Central Civil Services (Classification, Control & Appeal) Rules, 1965).
- The legally married spouse of a deceased employee is also eligible under the UPS scheme.
This extension gives eligible individuals more time to make a well-informed decision regarding their retirement planning.