New Delhi: The central government has officially notified the rules for the Unified Pension Scheme (UPS), laying out detailed service-related provisions for government employees who choose this retirement option under the National Pension System (NPS).
The Ministry of Personnel, Public Grievances and Pensions, through the Department of Pension and Pensioners’ Welfare, published the notification in the Official Gazette.
These rules form part of the Central Civil Services (Implementation of the Unified Pension Scheme under NPS) Rules, 2025.
What the New UPS Rules Cover
The 2025 rules provide a structured framework for how the UPS will operate within the existing NPS structure. The key areas covered include:
How employees can enroll in the Unified Pension Scheme
Option to switch back to NPS, either:
One year before retirement, or
Up to three months before opting for voluntary retirement
Contribution rules for both:
Employees
Government/employer
Compensation provisions if there is:
Delay in registration
Delay in crediting contributions to the NPS account
Benefit claims in cases of:
Death or permanent disability during service
Choice to opt for CCS (Pension) Rules or UPS benefits
Eligibility for retirement benefits under situations like:
Superannuation
Premature or voluntary retirement
Medical invalidation
Resignation or absorption in autonomous bodies/PSUs
Impact of:
Dismissal, compulsory retirement, or removal from service
Rules for pending departmental or court cases at the time of retirement
Employee Response
Manjeet Singh Patel, President of the All India NPS Employees Federation, welcomed the move.
He called it a “historic milestone”, especially the rule allowing retirement benefits after 20 years of regular service, replacing the previous 25-year requirement.
He noted that this was a long-pending demand and said the changes would improve retirement security for lakhs of employees.
What is the Unified Pension Scheme (UPS)?
The UPS is a retirement benefit option created within the National Pension System framework, specifically for central government employees.
Its main goals are to:
Ensure an assured, inflation-protected, and sustainable pension
Reduce risks linked to unpredictable pensions, long life spans, and market fluctuations
The Pension Fund Regulatory and Development Authority (PFRDA) regulates the scheme.
Implementation Timeline
The scheme was approved by the central government on August 24, 2025
It is effective from April 1, 2025
