Unified Pension Scheme: Deadline for Central Govt employees is Nov 30

The Finance Ministry has set a November 30, 2025, deadline for Central Government employees and NPS subscribers to switch to the new Unified Pension Scheme (UPS), an optional defined-benefit plan offering predictable retirement income.

With the deadline fast approaching, the Ministry of Finance has reminded eligible Central Government employees and National Pension System (NPS) subscribers to submit their requests for the Unified Pension Scheme (UPS) by November 30, 2025. The UPS, notified earlier this year via notification dated January 24, 2025, offers an alternative pension framework for Central Government employees who wish to switch from NPS.

Understanding the Unified Pension Scheme (UPS)

The Unified Pension Scheme (UPS) is a new, optional defined-benefit pension plan for Central Government employees in India, introduced on April 1, 2025, to provide an assured, inflation-indexed retirement payout. It operates within the National Pension System (NPS) but guarantees a pension equal to 50 per cent of the average last 12 months' basic pay for those with at least 25 years of service, along with a spouse pension and gratuity. Unlike the market-linked NPS, UPS offers a predictable, guaranteed income stream that is not subject to market fluctuations

Application Process

According to the Ministry, subscribers can exercise their option through two modes: they may submit their requests online via the Central Recordkeeping Agency (CRA) system, or alternatively, they can file a duly filled physical application with their respective Nodal Offices. The Ministry has further directed all Nodal Offices to process the applications received through either channel strictly in accordance with the prescribed procedure.

Additional Benefits and Flexibility

The UPS offers several key benefits, including improved tax exemptions, options for resignation and compulsory retirement benefits, and a provision for eligible employees and past retirees under NPS to transition into the new system. Importantly, employees choosing UPS will continue to retain the flexibility to switch back to NPS at a later stage if they wish.

Final Reminder from the Ministry

The government has urged all eligible individuals--both serving employees and past retirees under the NPS framework--to ensure that they submit their requests well before the 30.11.2025 deadline to take advantage of the benefits available under the new scheme. The Ministry emphasised timely action, stating that this final window provides subscribers with a crucial opportunity to review their long-term pension preferences and make an informed choice under the newly introduced UPS.

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