By July 20, more than 31,500 government employees chose this option, what are you thinking?

The Unified Pension Scheme (UPS) introduced by the central government has so far adopted 31,555 central employees. The scheme is an alternative scheme under the National Pension System (NPS), which gives the option to provide guaranteed pension benefits to the employees. The government gave this information in Parliament on 28 July. According to PTI news, Finance Minister Nirmala Sitharaman told the Lok Sabha that 7,253 claims were recorded under UPS by 20 July 2025, out of which 4,978 claims have been paid.

UPS option till 30 September

On the demand of employee organizations, the government has extended the last date of application in UPS to three months to 30 September 2025. This scheme has been implemented from 1 April 2025. 25,756 retired employees will get additional benefits under UPS. It includes employees who retired by 31 March 2025, dead or rule under FR 56 (J). The condition is that they have completed at least 10 years of service and covered under NPS.

Gratuity and extraordinary pension will also be benefited

Employees who choose UPS will now be entitled to retirement gratuity and death gratuity. In addition, they will also get benefit under CCS (Pension) Rules 2021 or CCS (Exceptional Pension) Rules 2023 in case of death, disability or inability during service. The employees involved in UPS will get the same tax benefits under the Income Tax Act 1961 which are given in NPS. The government made it clear that at present there is no plan to increase benefits like UPS to other pension schemes or private sector.

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