Government Employees Get Relief: Deadline Extended to Switch from NPS to UPS Pension Scheme Until September 30

UPS Pension Update (September 17, 2025): In a big relief for government employees, the Ministry of Finance has extended the deadline for choosing between the National Pension System (NPS) and the Unified Pension Scheme (UPS). Employees who joined service between April 1, 2025, and August 31, 2025, currently enrolled under NPS, can now switch to UPS if they wish. The last date to make the switch has been set for September 30, 2025.

One-Time Option for Employees

The government has clarified that this opportunity is being given as a one-time option to employees. The move is aimed at ensuring better retirement security and allowing individuals to choose the pension system that best suits their financial needs.

Employees who opt for UPS now will also retain the flexibility to move back to NPS in the future, offering them more freedom to align their pension choices with long-term financial goals.

What is the Unified Pension Scheme (UPS)?

The UPS is a fund-based pension system where both the employee and the central government make regular contributions during the service period. After retirement, employees receive a guaranteed monthly pension.

The highlight of UPS is that it ensures a minimum pension of ₹10,000 per month, provided the employee has worked for at least 10 years. The pension amount is linked to the employee’s last drawn salary, ensuring stability and predictability in post-retirement income.

How is UPS Different from NPS?

The key differences between NPS and UPS are:

• Nature of returns:

  • NPS is market-linked. Returns depend on stock market and bond performance.

  • UPS offers guaranteed returns, with a minimum pension amount fixed.

• Pension structure:

  • In NPS, the pension depends on the corpus accumulated at retirement.

  • In UPS, employees are assured of at least ₹10,000 monthly pension irrespective of market conditions.

This difference makes UPS attractive for employees looking for financial security and stability, while NPS appeals to those willing to take risks for potentially higher returns.

How to Switch from NPS to UPS Online?

The government has made the migration process simple and fully online via the eNPS portal. Here’s the step-by-step guide:

1. Visit the eNPS portal.

2. Select the option “NPS to UPS Migration.”

3. Enter your PRAN number and date of birth.

4. Complete OTP verification.

5. Read and accept the declaration before proceeding.

6. Use your Aadhaar number/VID for e-Sign and verify via OTP.

7. Once successful, you will receive an Acknowledgement Number and can download your confirmation form.

Why the Government Took This Step

According to the Finance Ministry, the decision to allow this flexibility is part of a broader effort to give employees greater financial security post-retirement. The government believes this move empowers employees to make informed decisions based on their personal financial goals, risk appetite, and long-term retirement needs.

Key Takeaways for Employees

• Employees who joined service between April 1, 2025 – August 31, 2025, and are under NPS, now have the option to shift to UPS.

• The deadline to exercise this choice is September 30, 2025.

• UPS guarantees a minimum pension of ₹10,000 per month after at least 10 years of service.

• NPS is market-driven, while UPS offers fixed pension security.

• The shift process is completely online via the eNPS portal.

Final Word

This extension is a welcome move for thousands of newly joined government employees. While NPS offers the possibility of higher but market-linked returns, UPS provides the assurance of a guaranteed pension. Employees are advised to carefully evaluate their financial goals, job security, and retirement plans before making the switch.

With the deadline approaching on September 30, 2025, employees should act promptly to make their choice and secure their financial future.