Centre Allows One-Time Switch from UPS to NPS for Govt Employees

Amidst the demand for old pension, the central government has given a big gift to lakhs of government employees. Now government employees will be able to change from UPS to National Pension System (NPS) in one go. The government said that this facility will be unilateral. Once employees transition from UPS to NPS, they will not be able to return to UPS.

The Unified Pension Scheme was launched earlier in the year as an option within NPS for employees who are joining the Central Government Civil Services on or after April 1, 2025. Current government employees already covered under NPS have also been provided with the opportunity to opt for UPS. In March 2025, the Pension Fund Regulatory and Development Authority (PFRDA) had issued the related rules for UPS. As of July 20, about 31,555 central government employees have opted for the Integrated Pension Scheme (UPS). The last date for enrollment under this scheme is September 30.

The Finance Ministry said in an office memorandum that it has been decided that a one-time, one-way switch facility from UPS to NPS will be made available to all central government employees who have opted for UPS. The government said that employees taking UPS can avail the switch facility at any time. This can be one year before the date of retirement or three months before the estimated date of retirement in case of voluntary retirement.