Good News for Government Employees: Full Pension After 20 Years of Service, UPS Notified

New Delhi: The central government has officially notified the Unified Pension Scheme (UPS). Under the new scheme, central government employees will be entitled to full retirement benefits after completing 20 years of service. UPS has been effective from April 1, 2025.

Option to Switch to UPS

• Employees currently under the National Pension Scheme (NPS) can opt to switch to UPS.

• Last date to switch: September 30, 2025.

• The switch can be exercised at least one year before retirement or three months before voluntary retirement.

• Employees under disciplinary action or pending inquiries cannot switch.

• Those who do not opt for the switch will remain in UPS by default, while NPS members who stay in NPS cannot switch to UPS after September 30, 2025.

Retirement Benefits After 20 Years

• Previously, employees needed 25 years of service to claim full retirement benefits.

• Now, 20 years of regular service is sufficient to receive full pension benefits.

Benefits on Death or Disability

• In the event of an employee’s death or disability, the family or employee can choose between CCS Pension Rules or UPS benefits, ensuring secure pension entitlements.

Key Features of UPS

• Both the employee and the government contribute to the scheme.

• Compensation is provided for delayed registration or contribution credit.

• UPS rules apply even in cases of early retirement, medical retirement, or removal from service.

• Employees moving to autonomous bodies or public sector units can also receive UPS benefits.

Employees Welcome the Move

• Manjeet Singh Patel, President of All India NPS Employees Federation, called the 20-year retirement benefit provision a historic step for employees’ welfare.

• The UPS was decided by the government on August 24, 2024, notified as an NPS alternative on January 24, 2025, and PFRDA regulations were issued on March 19, 2025.