The central government has extended the deadline for joining the Unified Pension Scheme (UPS) by two months.
The new deadline is November 30, 2025, instead of the earlier September 30, 2025.
This gives employees more time to make an informed decision. The Ministry of Finance initiated this extension and has informed the Pension Fund Regulatory and Development Authority (PFRDA).
About the Unified Pension Scheme (UPS)
Launched on April 1, 2025, UPS is an alternative to the National Pension System (NPS). Under UPS:
Employees receive a fixed monthly pension after retirement.
Pension can be up to 50% of the average basic salary in the last 12 months.
Employees contribute 10% of their salary, and the government contributes 18.5%.
The scheme aims to provide better pension benefits and financial security for retirees.
Low Participation and Reason for Extension
Out of 2.3 million central government employees, only around 100,000 have joined UPS so far.
To encourage more participation and allow employees to understand the benefits of switching from NPS to UPS, the government decided to extend the deadline.
This move comes after requests from employees and employee organizations.
New Features and Benefits
UPS has introduced several improvements, including:
Option to switch
Resignation benefits
Compulsory retirement benefits
Tax exemptions
The extended deadline gives employees enough time to understand these changes and choose a fixed pension under the plan.
Pension Details
Employees with 10 years of service will get a minimum monthly pension of ₹10,000.
Employees with 25 years or more of service will receive 50% of their last salary as pension.
The scheme is specifically for employees who joined the central government after January 1, 2004, and are covered under NPS.
