Pension: Great news for pensioners, the government has given this big relief..

The central government has started a big facility for its central employees. Now the employees who are members of the Unified Pension Scheme (UPS) will have the option to switch to the National Pension System (NPS) once. This change will come into effect from September 2025. The Department of Pension and Pensioners Welfare published the Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System) Rules, 2025 in the official India Gazette on 2 September 2025. The purpose of these rules is to facilitate the employees involved in UPS to switch to NPS.

These are the necessary conditions for the switch.

The government said in a press release issued on 15 September 2025 that UPS member employees can now switch to NPS only once. Once switched, it will not be possible to go back to UPS. For the switch, the employee will have to apply at least one year before retirement or three months before Voluntary Retirement (VRS).

But this facility is not for those employees who have been removed from service, or who have been dismissed from service, or who have come under the purview of compulsory retirement. Also, those who are facing any disciplinary action or who are proposed will not be able to take advantage of this switch. Employees who do not switch during this period will remain under UPS.

What will you get on switching to NPS?

Employees who switch from UPS to NPS will get all the benefits available under NPS. Also, the government will give an additional 4% amount to their contribution, which will strengthen their pension fund. The government believes that this option will help employees choose their pension scheme better and strengthen their retirement finances.

UPS was implemented in April

It is worth noting that UPS, i.e., Integrated Pension Scheme, was approved by the Cabinet on 24 August 2024, and it was implemented from 1 April 2025. UPS is actually an extension of NPS, in which employees have been given better options under the Integrated Pension Scheme.

The new rules clearly state the process of enrollment for UPS, the mechanism of contribution, compensation in case of delay, and the benefits in case of death or disability. The rules also cover benefits on different forms of retirement, such as premature retirement, voluntary retirement, transfer to a PSU or autonomous body.

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