• Source:JND
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Unified Pension Scheme: If you are a central government employee currently enrolled in the New Pension Scheme (NPS), you can switch to the Unified Pension Scheme (UPS) from April 1, 2025. This new scheme has been introduced by the central government for its employees in place of the NPS. UPS promises guaranteed pension benefits and aims to provide better financial stability after retirement. The Pension Fund Regulatory and Development Authority (PFRDA) has framed clear guidelines to ensure a smooth transition.

Eligibility criteria for UPS

- Current central government employees as of April 1, 2025.

- New employees joining after April 1, 2025.

- Retired employees who were part of the NPS and retired before March 31, 2025.

This change is expected to benefit around 23 lakh government employees.

Key Benefits of UPS

- Guaranteed Pension: Employees who have served for more than 10 years will get a guaranteed monthly pension of Rs. 10,000.

- Higher Pension for Longer Service: Those with 10 to 25 years of service will get pension benefits reflecting their years of service.

- Balanced Contributions: Employees contribute 10% of their basic salary and dearness allowance, an amount matched by the government.

- Investment Options: The government manages the pension funds by default, employees can also opt for private pension fund managers if they wish.

- Family Support: In the unfortunate event of the death of the pensioner, their spouse will get 60% of the pension.

How to Switch to UPS?

Central Government employees currently under NPS can easily switch to Unified Pension Scheme (UPS) using both online and offline methods.

Steps to migrate to UPS - Online

- Visit npscra.nsdl.co.in.
- Navigate to the UPS migration page from the homepage.
- Select UPS and complete the application process.

How to migrate from NPS to UPS - Offline

- Obtain the UPS migration form from the designated office.
- Fill it out and submit it to the concerned department.

Currently, UPS is available only for central government employees. State governments will make their own decisions on whether to implement it for their employees or not.

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