NPS To UPS Switch Deadline: Today, 30th September is going to be a very important date for the central government employees. The employees will have to decide whether they will remain in the existing National Pension System (NPS) or will switch to the newly implemented Unified Pension Scheme (UPS).
While UPS assures a guaranteed minimum and inflation linked pension, NPS is a market linked scheme in which returns can be higher, but risks are also present. In such a situation, the countdown for choosing a pension scheme has begun for the central employees. By 30th September, they will have to decide whether they will remain in the existing National Pension System or join the Unified Pension Scheme.
UPS vs NPS
It’s worth noting that UPS employees receive a guaranteed minimum pension and an inflation-linked pension. On the other hand, NPS is a market-linked scheme that can offer higher returns but also carries the risk of market fluctuations.
What are the rules
The Pension Fund Regulatory and Development Authority (PFRDA) has issued detailed rules and guidelines for this decision.
- – On September 2, the government had implemented this system that employees who choose UPS will get a chance to switch to NPS only once in their lifetime.
- – But once you leave UPS and switch to NPS, it will not be possible to return to UPS.
- – This option can be exercised at least 1 year before retirement or 3 months before taking VRS.
- – If an employee does not take a decision by September 30, he will automatically be covered under UPS.
- – Employees who are facing disciplinary proceedings, have been removed as a punishment or have been given compulsory retirement will not get the option to change the pension scheme.
Rules for new employees
Employees who joined government service between April 1, 2025, and August 31, 2025, and have already opted for NPS are also permitted to switch to UPS until September 30. New employees who have not yet filed a PRAN (Permanent Retirement Account Number) form can physically submit Form A1 to their nodal office. Such employees may choose to switch to NPS later, but this option, once selected, will be final.
PFRDA advice
In view of the rush of employees, PFRDA has advised that if the online system malfunctions or the website is unavailable, employees should submit their forms physically to the nodal office by September 30. It should be noted that UPS was launched in August 2024. This decision was made following demands from employees’ organizations, who demanded the return of guaranteed pensions similar to the Old Pension Scheme (OPS).
Process to switch from NPS to UPS
1. The employee has to fill an application form through his/her department/office, entering the option to switch from NPS to UPS.
2. It is mandatory to make this application within the stipulated time limit (by 30 September 2025).
3. The department will forward the application to the pension authority and the NPS account will be transferred to UPS.
4. Employee must abide by UPS terms and conditions.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
Add businessleague.in as a Preferred Source
