Government Extends Deadline to Join UPS: Employees Can Opt In Until November 30

The Central Government has provided significant relief to employees by extending the deadline for joining the Unified Pension Scheme (UPS). Initially, the last date to opt for this scheme was set as September 30, 2025. However, in response to growing demands from employees and stakeholders, the government has now pushed the deadline forward to November 30, 2025, giving eligible individuals two additional months to make their choice.

Extra Time for Employees, Retirees, and Families

With this extension, not only current employees but also retirees and the legal spouses of deceased employees now have more time to shift to the UPS. The decision comes after multiple representations were made to the Ministry of Finance’s Department of Financial Services (DFS), requesting additional time to evaluate the benefits and implications of the scheme.

Originally, the government had given a three-month window for employees to opt for the UPS, which ended on June 30, 2025. This was later extended to September 30. Now, with the latest decision, individuals have until November 30, 2025, to take advantage of this opportunity.

Why the Extension Was Needed

According to the Finance Ministry, recent improvements introduced in the UPS have generated renewed interest among employees. These changes include:

• Switch Option: Flexibility for employees to switch schemes.

• Additional Benefits on Resignation or Compulsory Retirement: Enhanced retirement benefits.

• Tax Incentives: Special tax relaxations to make the scheme more attractive.

These features have led to a surge in queries and applications from employees and pensioners, making it necessary to provide extra time so that no eligible person misses the opportunity to join.

Administrative Updates in Process

The Ministry of Finance has directed the Pension Fund Regulatory and Development Authority (PFRDA) to implement the extension. The PFRDA has been instructed to make all necessary technical and administrative changes within the Central Recordkeeping Agency (CRA) system and issue a circular to ensure smooth execution of this decision.

Officials have confirmed that this extension was formally approved by the Union Finance Minister, underlining the government’s intent to provide maximum convenience to its employees.

Previous Relaxations and Eligibility

Earlier, a special one-time option was provided to employees who joined service between April 1, 2025, and August 31, 2025, allowing them to switch from the National Pension System (NPS) to the Unified Pension Scheme. This extension, however, applies to the broader set of eligible individuals who had not been able to exercise their choice until now.

The UPS was officially notified on January 24, 2025, with the aim of offering a more streamlined and beneficial pension system compared to existing options.

Current Adoption Numbers

Despite the government’s efforts, adoption of the Unified Pension Scheme has remained relatively low. According to a Business Standard report, only 1.37% of central government employees had opted for the UPS by July 20, 2025. In a written reply to the Lok Sabha on July 28, the Finance Ministry confirmed that a total of 31,555 employees had chosen the scheme by that date. Updated figures as of September 30 have not yet been released.

What This Means for Employees

The extension until November 30, 2025, is expected to boost participation rates, as employees, retirees, and their families get more time to carefully assess the financial advantages of switching to UPS. For those seeking better retirement security, additional tax benefits, and more flexible options, the scheme presents a promising alternative.

The government’s move reflects its effort to balance administrative feasibility with employee welfare. By extending the deadline twice in a single year, it has signaled openness to feedback and willingness to accommodate the genuine concerns of its workforce.