The Ministry of Finance has asked government employees to choose the Unified Pension Scheme (UPS) before the September 30, 2025 deadline.
The UPS, introduced under the National Pension System (NPS) from April 1, 2025, guarantees pension and retirement benefits.
Employees can switch from UPS to NPS only once.
So far, 31,555 employees have already opted for UPS.
Choosing before the deadline will ensure smooth processing of benefits without delays.
UPS Option for NPS Employees
Under this scheme, employees and retired individuals who are part of NPS can move to UPS by the deadline.
However, once they decide to remain in NPS, they will not be allowed to join UPS later.
That’s why the Finance Ministry has urged employees to decide early and avoid last-minute technical issues.
Government data shows 31,555 employees had already joined UPS by July 20, 2025.
The Ministry warns that late applications may face administrative challenges.
Switching Back to NPS
On August 25, 2025, the Finance Ministry announced that employees opting for UPS will get a one-time chance to switch back to NPS.
But once they return to NPS, they cannot rejoin UPS.
Employees can exercise this option:
One year before retirement, or
Three months before voluntary retirement.
This flexibility helps employees plan their future systematically.
Benefits of UPS
UPS offers several advantages:
Retirement and death gratuity.
Benefits under CCS Pension Rules, 2021 or Special Pension Rules, 2023 in cases of death, disability, or infirmity.
A guaranteed pension, ensuring financial stability post-retirement.
Tax benefits similar to NPS under the Income Tax Act, 1961.
Why Early Decision Matters
The Finance Ministry emphasized that applying late may cause technical delays.
By choosing UPS before September 30, employees can avoid such problems.
Experts believe UPS combines the security of the old pension system with the flexibility of NPS, fulfilling employees’ long-standing demand for a fixed pension.
Final Reminder
The September 30, 2025 deadline is critical for government employees.
Opting for UPS on time ensures hassle-free processing and guaranteed retirement benefits.
Employees can either remain with NPS or move to UPS—but there will be no second chance after the deadline.
