This option can be used only once and once the employee chooses NPS, he will not be allowed to return to UPS again. Let us tell you that its purpose is to give employees the flexibility to plan their retirement financial security in a better way.
The Department of Pension and Pensioners Welfare, Government of India issued an important notification in the Gazette of India on 2 September 2025. Under this, the Central Civil Services (Unified Pension Scheme – UPS Rules, 2025 has been implemented. The purpose of these rules is to regulate the service conditions of those central employees who have opted for UPS. Now the government issued a press release on 15 September 2025, clarifying that now the employees involved in UPS will be given the option to go to NPS (National Pension System) once. This option can be used only once and once the NPS is chosen, the employee will not be allowed to return to UPS again. Let us tell you that its purpose is to give flexibility to the employees to plan their retirement financial security in a better way.
What is the detail
Employees can take this switch option at least one year before their retirement or three months before voluntary retirement (VRS). However, employees against whom disciplinary proceedings are going on or who have been subjected to punitive action such as dismissal, removal or compulsory retirement will not be able to avail this facility. The government has also decided that willing employees will have to choose this option by 30 September 2025. Employees who do not choose the option within this stipulated time limit will automatically remain under UPS.
Employees opting for NPS will get the general facilities of NPS along with the benefit of additional 4% contribution between UPS and NPS. The government says that this arrangement will give employees more flexibility in their pension planning and better options for future financial security. Overall, the new system gives central employees more freedom in planning their retirement and gives them the opportunity to decide which pension model is more suitable for them.
What was said in the government’s press release-
Opportunity to switch from UPS to NPS
The government has given a one-time opportunity to switch from UPS (Universal Pension Scheme) to NPS (National Pension Scheme) to those employees who had opted for UPS till September 30, 2025.
Here are some important details about the change:
1. You will get a chance only once
Employees who switch from UPS to NPS will be able to do this only once. Once they switch, they cannot switch back to UPS.
2. Deadline for switching
2. Deadline for switching
If you want to switch, you need to take this decision at least one year before retirement or three months before VRS (voluntary retirement).
3. Switch not allowed in some cases
If you have been dismissed from service, compulsorily retired as a punishment, or if any disciplinary proceedings are pending against you, you will not be able to choose this option.
4. If you don’t switch
Employees who do not opt for the switch within the stipulated time will remain under UPS.
Benefits of joining NPS
Employees who switch to NPS will get all the benefits of NPS. Also, they will get an additional contribution of 4%. This option will help employees plan better for their post-retirement financial security.
According to a press release dated 4th September 2025, the Union Cabinet had approved the implementation of the Unified Pension Scheme (UPS) on 24th August 2024. Subsequently, the Department of Financial Services notified the UPS on 24th January 2025. This scheme was brought as an option/scheme under NPS, for which employees covered by NPS had to submit their option. This new pension scheme has become effective from 1st April 2025. To avail this benefit, employees covered under NPS will have to submit their option.
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