Overview
- The Finance Ministry notified PFRDA that the cutoff to choose the Unified Pension Scheme has been moved from September 30 to November 30, 2025.
- The extension applies to eligible central government NPS subscribers, recent retirees, and legally wedded spouses of deceased eligible retirees.
- Authorities cited low uptake despite updates on switch options, resignation and compulsory retirement benefits, and tax treatment; reports put sign-ups at roughly 100,000 out of about 23 lakh eligible.
- UPS guarantees a defined payout—50% of the prior 12 months’ average basic pay after 25 years of service, with a minimum ₹10,000 monthly after 10 years—funded by a 10% employee contribution, a 10% government match, and an additional ~8.5% government contribution to a pooled corpus.
- Switching is barred for employees removed, dismissed, compulsorily retired as a penalty, or facing disciplinary proceedings, and PFRDA has been asked to update systems and issue implementing guidance, with online and physical submissions permitted.