Overview
- The Finance Ministry opened a one-time option for employees who joined between April 1 and August 31, 2025 to migrate from NPS to the Unified Pension Scheme, with applications due by September 30.
- The Department of Pension and Pensioners’ Welfare’s rules, notified on September 2, allow a single switch from UPS back to NPS if exercised at least one year before superannuation or three months before voluntary retirement.
- Switch-backs are barred for employees who are dismissed, compulsorily retired as a penalty, or facing ongoing or contemplated disciplinary proceedings.
- Under the rules, VRS is permitted after 20 years of service with an assured payout on a pro‑rata basis, while the full assured payout is available only after 25 years and is payable from the date of superannuation.
- UPS provides an assured pension equal to 50% of average basic pay over the final 12 months after 25 years’ service, spouse benefits up to 60%, and access on retirement to 60% corpus withdrawal, a lump sum linked to service, gratuity, leave encashment and CGEGIS; uptake stands at about 40,000 of roughly 23.94 lakh eligible employees.