Overview

• An August 25 Finance Ministry notification permits UPS subscribers to switch to NPS once, no later than one year before superannuation or three months before voluntary retirement.
• The option is unavailable in cases of removal, dismissal, compulsory retirement as a penalty, or where disciplinary proceedings are ongoing or contemplated.
• After the switch, PFRDA Exit and Withdrawal Regulations, 2015 apply, assured UPS payouts stop, and the government’s 4% differential contribution is credited to the NPS corpus at exit.
• If the switch is not exercised within the specified timelines, the employee continues under UPS by default, with similar provisions to be issued for resignation and Rule 56J cases.
• UPS has been available since April 1, 2025 with enrolment open until September 30, and 31,555 central employees had opted in by July 20.