UPS Scheme : There is a big relief news for those doing government jobs. The central government has recently notified the Unified Pension Scheme (UPS). This scheme has come into effect from April 1, 2025 and now central employees are getting the option to join it.
The special thing is that in UPS, a fixed pension is available after retirement, while the existing National Pension System (NPS) is completely linked to the market.
What is UPS scheme?
UPS is actually a fund-based pension system. In this, the contribution of both the employee and the central government is deposited every month and after retirement the employee gets a regular pension. The best thing is that in this, a guaranteed pension of at least Rs 10,000 will be available every month, provided the employee has worked for at least 10 years.
What is the difference between UPS and NPS?
NPS is market based, in this money is invested in places like shares and bonds. Therefore the returns depend on the market movement.
Pension in UPS is guaranteed and is linked to your last salary.
In NPS, pension is calculated according to the corpus deposited on retirement. In UPS, the minimum pension is fixed at Rs 10,000 in all circumstances.
Who can choose UPS?
UPS is only for central government employees who were appointed after January 1, 2004 and who are currently enrolled in NPS. This scheme is not for railway employees, daily wage workers, casual staff, All India Services officers or those working on contract. Existing employees can opt for UPS till October 1, 2025. New employees, who will join after April 1, 2025, will have to give the option within 30 days of joining.
How to shift from NPS to UPS online?
For this, the government has started an easy process on the eNPS portal.
Step-by-step process
Visit the eNPS portal.
Select NPS to UPS Migration option.
Enter your PRAN number and date of birth.
Do OTP verification.
Read and accept the declaration and e-Sign it.
Enter OTP from Aadhaar number/VID and verify.
If the process is successful, you will get an Acknowledgement Number and you will be able to download the form.
Keep in mind that once a UPS is chosen, it cannot be changed.
Offline application option
If you do not want to apply online then you can download and fill Form A2.
This will have to be verified by your office head.
It will then be sent to DDO → PAO/CDDO → CRA.
After that your PRAN will be allotted and the first contribution will have to be deposited within 20 days.
Why is UPS special?
This scheme is a relief for those employees who used to feel insecure about their future in the market fluctuations. Now they will have the assurance that after retirement they will get a fixed pension every month.
