Government Scheme: This scheme proved to be a non-starter; data presented in Parliament reveals employee disillusionment.

UPS Scheme: Central government employees appear dissatisfied with the UPS scheme. Employees have shown little interest in this scheme, which was implemented starting April 1.

Central Government UPS Scheme: The government runs various schemes for employees to provide them with multiple benefits. However, there are instances where employees are unhappy with certain schemes and reject them outright, causing the schemes to fail or underperform. One such central government scheme has proven to be a non-starter within just a year.

Which scheme is this?

This scheme is the UPS, or Unified Pension Scheme, approved by the central government in 2024 and implemented from April 1, 2025. It serves as an option alongside the NPS (National Pension System) for central government employees. However, central government employees have largely rejected it. The workforce does not appear pleased with the scheme—a fact confirmed not by us, but by government data.

What do the figures say?

Government data regarding this scheme was presented in Parliament on Monday. According to these figures, only 118,195 employees had opted for the UPS by July 19, 2026. This figure represents just 4.3 percent of the approximately 27.6 lakh central government subscribers under the NPS. In other words, the vast majority of employees have chosen to remain with the NPS.

The government introduced the UPS option when employees were seeking an alternative to the NPS, but the response fell short of expectations. The government even had to extend the deadline for opting into the UPS multiple times; yet, employees showed little interest. The reason behind this lack of interest remains unclear.

What did the Finance Minister say?

During the discussion in the House, Finance Minister Nirmala Sitharaman also clarified that there is currently no proposal under consideration to modify or discontinue the UPS.

Know about the scheme

It is worth noting that the UPS is a pension scheme offering a guaranteed pension along with several other benefits. Under the UPS, employees receive the benefit of a guaranteed pension. Upon completing 25 years of qualifying service, the pension amount is equivalent to 50 percent of the average basic pay drawn during the last 12 months prior to retirement.

Benefits for the family

The scheme includes a provision for the family to receive 60 percent of the employee’s pension as a family pension in the event of the employee’s death. Employees retiring after a minimum of 10 years of service are entitled to a minimum monthly pension of ₹10,000. Additionally, the scheme provides for a lump-sum payment at the time of retirement, over and above the gratuity.