Unified Pension Scheme (UPS) Extended to More Retirees: Key Features, Eligibility, and How to Apply

The central government has announced that employees who retired on or before March 31, 2025, can now choose to switch to the Unified Pension Scheme (UPS). This move offers a fresh opportunity to retirees who were part of the National Pension System (NPS) but missed the April 1, 2025, rollout of UPS.

This benefit is open to the retiree or their legally wedded spouse and aims to provide a monthly assured pension after retirement.

Background: From NPS to UPS

Since the NPS replaced the Old Pension Scheme (OPS) in 2004, employees have repeatedly demanded the return of OPS. In response, the central government introduced the Unified Pension Scheme (UPS), blending elements of both OPS and NPS. However, uptake has been low, with fewer than 50,000 out of 23 lakh eligible NPS employees choosing UPS so far.

Unified Pension Scheme (UPS): Key Dates and Eligibility

• Who can apply?

  Central government retirees (excluding armed forces) covered under NPS who retired on or before March 31, 2025, with a minimum of 10 years of eligible service.

• Deadline to opt for UPS

  June 30, 2025

Highlights of the Unified Pension Scheme

• Assured Monthly Pension

  Retirees will receive a guaranteed pension, calculated at 50% of their last 12-month average basic pay, provided they have completed 25 years of qualifying service.

• Minimum Guaranteed Pension

  Even if the service is less than 25 years but more than 10 years, a minimum payout of ₹10,000/month will be given, subject to conditions like regular contributions and no withdrawals.

• Employee and Employer Contributions
  
  Employee: 10% of basic pay + DA
  Central Govt: 10% matching contribution
   

• Additional Govt Support

  Around 8.5% extra (based on pay + DA) added to a shared pool to help fund the pension payouts.

• Voluntary Retirement Option

  If an employee takes voluntary retirement after 25 years, they will get the pension from the date they would have normally retired.

Read More, UPS or NPS: Central Govt Employees Must Pick Pension Plan by June 30. 

How to Know More and Apply

The PFRDA (Pension Fund Regulatory and Development Authority) is holding regular webinars to explain the UPS. Details are available on their official website.

Conclusion

The government’s decision to extend the Unified Pension Scheme to more retirees is a significant step toward providing financial security to former employees. Those who are eligible should carefully consider the benefits and apply before the June 30, 2025, deadline to ensure they don’t miss out on this assured pension opportunity.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.