Finance Ministry Grants 3 Month Extension for Unified Pension Scheme Option

The Ministry of Finance has extended the cut-off date for opting into the Unified Pension Scheme (UPS) by 3 months. Eligible central government employees, past retirees, and legally wedded spouses of deceased retirees can now exercise their option until September 30, 2025, instead of the earlier deadline of June 30, 2025.

Notification Timeline

The Unified Pension Scheme was notified on January 24, 2025, through Notification No. F. No. FX-1/3/2024-PR. To operationalise it, the Pension Fund Regulatory and Development Authority (PFRDA) issued supporting regulations on March 19, 2025.

Initially, the deadline to opt in was June 30, 2025. After multiple stakeholder requests, the government has extended the window by three months.

As per the press release, "In view of representations received from 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., up to 30 September 2025 for eligible existing employees, past retirees, and the legally wedded spouses of deceased past retirees."

Who Can Opt for the Unified Pension Scheme

Eligible individuals include:

• Central government employees in service as of April 1, 2025
• Retirees who superannuated on or before March 31, 2025, with a minimum of 10 years of service or who retired under Rule 56(j) (not as a penalty)
• Legally wedded spouses of deceased eligible retirees

The Unified Pension Scheme (UPS), launched on April 1, 2025, provides an assured pension payout and a lump sum retirement benefit to its pensioners. It serves as an alternative to the National Pension System, which lacks guaranteed payouts. Recently, the scheme was enhanced to include gratuity benefits for government employees who opt for UPS.

Read more: Unified Pension Scheme Update: Retirement and Death Gratuity Extended to Central Government Employees!

Conclusion

The revised deadline of September 30, 2025, gives eligible individuals more time to decide whether to opt for the Unified Pension Scheme. Those who do not submit their choice by then will automatically continue under the National Pension System.

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