With the November 30 cutoff nearing, the Central government has issued a reminder to eligible employees and retirees under the National Pension System (NPS) to submit their requests for migration to the newly implemented Unified Pension Scheme (UPS).
According to sourced information, adoption of the new scheme remains low, with less than 4% of eligible central government personnel opting in so far.
Current Adoption Status
As per data shared with CNBC-TV18, approximately 1 lakh employees out of a total 27.92 lakh central government staff have shifted from NPS to UPS since the scheme was formally notified by the Ministry of Finance on January 24.
Application Process and Flexibility
NPS subscribers can initiate their migration request online using the Central Recordkeeping Agency (CRA) system, followed by submission of a physical application on or before November 30.
Officials have stated that employees who transition to UPS will retain the option to revert to NPS in the future if they choose.
Key Features Highlighted by the Centre
The government has outlined features associated with UPS, including:
- Switching flexibility
- Tax-related provisions
- Clauses addressing resignation and compulsory retirement
Eligible employees and retirees have been encouraged to complete the required formalities within the stipulated time frame.
Eligibility Criteria
The following groups are permitted to move to UPS:
- All central government employees covered under NPS as of April 1, 2025
- Eligible retirees
- Spouses of deceased employees
Individuals joining government service after April 1, 2025, must choose between NPS and UPS within 30 days of joining.
Restrictions apply to employees who:
- Are dismissed or removed from service
- Face compulsory retirement as a penalty
- Are under disciplinary inquiry or where such proceedings are being considered
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