From NPS To UPS: Last Date To Opt For Unified Pension Scheme Extended By 3 Months Till September 30
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The finance ministry extended the deadline for opting into the Unified Pension Scheme (UPS) to September 30, 2025. The UPS starts April 1, 2025, with assured pension benefits.
The finance ministry on June 23 said it has extended the deadline for exercising the option under the Unified Pension Scheme (UPS) by three months, allowing eligible individuals time until September 30, 2025. This move comes in response to several representations received from stakeholders requesting additional time.
The UPS, which was notified by the government on January 24, 2025, is an option under National Pension System (NPS) which provides assured pension income like old pension scheme (OPS). The scheme gets implemented from April 1, 2025.
UPS has been notified as an option under the NPS. As per the regulations, eligible existing employees, past retirees, and the legally wedded spouses of deceased past retirees were given a period of three months i.e., upto June 30, 2025, to exercise their option under the scheme.
Now, the deadline or the cut-off date has been extended by three months till September 30, 2025.
'In view of the representations received from various stakeholders requesting an extension of the cut-off date, the Government of India has decided to extend the cut-off date for exercising the option for UPS by three months i.e., upto 30th September 2025 for eligible existing employees, past retirees, and the legally wedded spouses of deceased past retirees," the ministry said in a statement.
The extension offers additional time for those who may have faced difficulties in completing the formalities within the original deadline.
To facilitate the scheme's implementation, the Pension Fund Regulatory and Development Authority (PFRDA) issued the relevant operational regulations on March 19, 2025.
Last week, Union Minister Jitendra Singh said all central government employees part of the Unified Pension Scheme (UPS) will now be eligible for retirement and death gratuity benefits available under the Old Pension Scheme (OPS).
Central government employees covered under the UPS will now be eligible for retirement and death gratuity benefits, as per the provisions of the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021, Singh said.
The Department of Pension and Pensioners' Welfare (DoPPW), under the Personnel Ministry, has issued an order on the 'options to avail benefits under Old Pension Scheme on death of government servant during service or his discharge from government service on account of invalidation or disability for central government servants covered under Unified Pension Scheme".
What Is Unified Pension Scheme?
The Union Cabinet in August 2024 approved the Unified Pension Scheme (UPS), for an assured pension post-retirement. The UPS has been implemented from April 1, 2025. The move comes after the long-pending demand of the central government employees to reform the new pension scheme (NPS).
It is the latest pension scheme for government employees.
Under the UPS, there will be a provision of a fixed assured pension, unlike the New Pension Scheme (NPS) which does not promise a fixed pension amount.
The Unified Pension Scheme has five pillars:
Assured Pension: Under the UPS, the fixed pension will be 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period up to a minimum of 10 years of service.
Assured Family Pension: It will also have an assured family pension, which is 60 per cent of the pension the employee was receiving. It will be given immediately in case of the retiree's demise.
Assured Minimum Pension: In the case of superannuation after a minimum 10 years of service, the UPS has a provision of an assured minimum pension of Rs 10,000 per month.
Inflation Indexation: There is a provision of indexation benefit on assured pension, on assured family pension and assured minimum pension.
Gratuity: Lump-sum payment at superannuation in addition to gratuity. It will be 1/10th of the monthly emolument (pay + dearness allowance) as on the date of superannuation for every completed six months of service. This payment will not reduce the quantum of assured pension.
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tags :
National Pension Scheme (NPS) NPS
Location :
New Delhi, India, India
First Published:
June 23, 2025, 19:18 IST
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