The Finance Ministry made this big announcement regarding UPS and NPS, you have only one chance
The central government has taken an important decision regarding Unified Pension Scheme i.e. UPS. The Finance Ministry on Monday announced that now central government employees can make a lump sum and unilateral change in the National Pension System i.e. NPS from UPS. According to PTI news, this facility will be for employees who have chosen UPS first. From 1 April 2025, the government has started UPS (Unified Pension Scheme) as an alternative scheme under NPS. The scheme provides for guaranteed returns to employees, ensuring regular income after retirement.
How many employees have chosen UPS so far?
According to the news, till July 20, around 31,555 central employees have joined UPS. The last date for enrollment in this scheme is set as 30 September 2025. Employees who have chosen UPS have been allowed to switch to NPS for once. This option will be available till one year before the possible date of retirement or 3 months before in terms of voluntary retirement.
What are the other benefits of UPS?
Retirement gratuity and death gratuity will benefit. If employees associated with UPS face death, disability or unhealthy during service, they will be given the option of pension benefits under CCS (Pension) Rules, 2021 or CCS (Extraordinary Pension) Rules, 2023. In addition, UPS has now been provided tax benefits as NPS under the Income Tax Act, 1961. That is, even after investing in UPS, you will get the benefit of tax exemption.
What is NPS?
The National Pension System or NPS is a pension scheme launched by the Government of India, which aims to ensure regular income (pension) to citizens after retirement. The scheme is operated and regulated by the Pension Fund Regulatory and Development Authority i.e. PFRDA) under the PFRDA Act, 2013. In this, the amount you invested are connected to the market, which is likely to get better returns in the long term. Even if you change the job or change the city, your NPS account remains on. The amount of investment and the method of investment can be fixed as per your convenience.
What is UPS?
The Integrated Pension Scheme (UPS) has been launched by the Central Government for central government employees from 1 April 2025 under the National Pension System (NPS). UPS provides sure payment based on the conditions prescribed. An existing central government employee, who belongs to the National Pension System (NPS), is eligible to choose the option of UPS by 1 April 2025.
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