The Finance Ministry on Tuesday extended the deadline for opting for the Unified Pension Scheme (UPS) till November 30, following a tepid response by the central government employees covered under NPS.
In a communication to the Pension Fund Regulatory and Development Authority (PFRDA) Chairman, the Department of Financial Services, under the Finance Ministry, informed about the decision to extend the cut-off date for exercising the choice of opting for UPS by another two months from the current deadline of September 30, 2025.
"Various positive changes have been announced recently under UPS, including the switch option, benefits on resignation, compulsory retirement, tax exemptions, etc. Requests have been received from various stakeholders that some more time needs to be given to employees to exercise the option in view of these changes," it said.
Accordingly, it has been decided to extend the cut-off date to exercise choice for UPS by two months -- up to November 30, 2025, for eligible existing employees, past retirees and the legally wedded spouse of the deceased past retirees, it added.
This has been approved by the Finance Minister, the communication to the PFRDA said.
As per PFRDA (Operationalisation of UPS under NPS) Regulations, 2025, eligible existing employees, past retirees and the legally wedded spouse of the deceased past retirees have been given a time-frame of three months to exercise choice for UPS -- up to 30 June 2025, it noted.
However, it said, based on various representations received from stakeholders, this deadline was subsequently extended till September 30, 2025, vide letter dated July 1, 2025.
PFRDA is requested to carry out necessary changes, including required entablements in the CRA systems, regulations or issue a circular to give effect to the decision of the government in this regard, it said.
Around 31,555 central government employees had opted for the UPS till July 20. According to reports, about 1 lakh out of 23 lakh government employees have opted for UPS till the deadline of September 30.
From April 1, 2025, the government has introduced UPS as an option under the National Pension System (NPS) for central government employees. UPS will provide assured payouts to the employees.
UPS is applicable to the central government employees, who are covered under the National Pension System (NPS) and choose this option under NPS, which came into effect on January 1, 2004. The option to choose between UPS and NPS can be exercised by 23 lakh government employees.
On August 24, 2024, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved UPS.
Under the old pension scheme, which ended in January 2004, employees got 50 per cent of their last drawn basic pay as pension.
Unlike the OPS, UPS is contributory in nature, wherein employees will be required to contribute 10 per cent of their basic salary and dearness allowance, while the employer's contribution (the central government) will be 18.5%.
In a communication to the Pension Fund Regulatory and Development Authority (PFRDA) Chairman, the Department of Financial Services, under the Finance Ministry, informed about the decision to extend the cut-off date for exercising the choice of opting for UPS by another two months from the current deadline of September 30, 2025.
"Various positive changes have been announced recently under UPS, including the switch option, benefits on resignation, compulsory retirement, tax exemptions, etc. Requests have been received from various stakeholders that some more time needs to be given to employees to exercise the option in view of these changes," it said.
Accordingly, it has been decided to extend the cut-off date to exercise choice for UPS by two months -- up to November 30, 2025, for eligible existing employees, past retirees and the legally wedded spouse of the deceased past retirees, it added.
This has been approved by the Finance Minister, the communication to the PFRDA said.
As per PFRDA (Operationalisation of UPS under NPS) Regulations, 2025, eligible existing employees, past retirees and the legally wedded spouse of the deceased past retirees have been given a time-frame of three months to exercise choice for UPS -- up to 30 June 2025, it noted.
However, it said, based on various representations received from stakeholders, this deadline was subsequently extended till September 30, 2025, vide letter dated July 1, 2025.
PFRDA is requested to carry out necessary changes, including required entablements in the CRA systems, regulations or issue a circular to give effect to the decision of the government in this regard, it said.
Around 31,555 central government employees had opted for the UPS till July 20. According to reports, about 1 lakh out of 23 lakh government employees have opted for UPS till the deadline of September 30.
From April 1, 2025, the government has introduced UPS as an option under the National Pension System (NPS) for central government employees. UPS will provide assured payouts to the employees.
UPS is applicable to the central government employees, who are covered under the National Pension System (NPS) and choose this option under NPS, which came into effect on January 1, 2004. The option to choose between UPS and NPS can be exercised by 23 lakh government employees.
On August 24, 2024, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved UPS.
Under the old pension scheme, which ended in January 2004, employees got 50 per cent of their last drawn basic pay as pension.
Unlike the OPS, UPS is contributory in nature, wherein employees will be required to contribute 10 per cent of their basic salary and dearness allowance, while the employer's contribution (the central government) will be 18.5%.
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