UPS vs NPS: Unified Pension Scheme deadline extended by 3 months, how many government employees have opted for it till now..

The Finance Ministry has extended the deadline for choosing either the Unified Pension Scheme (UPS) or the National Pension Scheme (NPS) by 3 months. Earlier the deadline to choose it was 30 June, which has now been extended to 30 September. The central government has extended this deadline after the demand made by all the stakeholders.

The notification issued by the Finance Ministry states that the central government has given its employees 3 more months to choose either NPS or UPS. Employees who are currently contributing to NPS can transfer their funds to UPS by September 30 if they wish. After this, employees will not be allowed to change their options and they will always remain in NPS. The government has implemented the UPS scheme from April 1, 2025.

In the suggestions issued with UPS, it was said that the central employees must choose UPS before September 30. It was told that if an employee fails in this, then he will remain in NPS. This means that if someone does not choose UPS, then he will be considered in NPS and will get a pension according to NPS on retirement.

Which employees are eligible for UPS

All such government employees whose service started after April 1, 2025, can choose UPS instead of NPS.

Central employees who have retired before March 31, 2025, also get the option to go from NPS to UPS.

How different is UPS from NPS?

In NPS, the pension of the employees depends entirely on the market and the money invested by them, which there is no guarantee from the government. In UPS, the government guarantees a pension of 50% of the basic salary of the employee after retirement. In NPS, the employee's contribution is 10% and the government's contribution is 14%. Whereas, in UPS, the employee's contribution is 10% and the government's contribution is 18%.

Only 10 thousand chose the scheme.

Even though the central government has promised to give guaranteed pensions in UPS, the employees are very hesitant to choose it. If seen, 23 lakh employees of the central government are considered eligible for UPS, but till the first deadline set on June 30, only 10 thousand employees have chosen UPS.

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