The Finance Ministry has issued an urgent alert to central government employees seeking to transition from the National Pension System to the newly introduced Unified Pension Scheme. With the November 30, 2025 deadline fast approaching, eligible staff are being encouraged to submit their applications immediately to avoid missing this crucial window.
What is the Unified Pension Scheme (UPS)?
Notified in January 2025 and officially implemented from April 1, 2025, the Unified Pension Scheme represents a significant alternative for government employees currently enrolled in the National Pension System. This contributory pension program requires employees to contribute 10% of their basic salary and dearness allowance, while the central government contributes 18.5% as the employer.
The scheme guarantees inflation-indexed retirement payouts, providing greater financial security for retiring employees. Both serving employees and past retirees under the NPS framework are eligible to make the transition, provided they submit their requests before the November 30, 2025 cutoff.
Key Benefits and Features of UPS
The Unified Pension Scheme offers several attractive benefits that make it appealing for government employees. Most notably, it promises pension equal to 50% of the average last 12 months' basic pay for central government employees who have completed at least 25 years of service.
Additional provisions include spouse pension benefits, gratuity payments, improved tax exemptions, and options for resignation and compulsory retirement benefits. The scheme also maintains flexibility, allowing employees who choose UPS to switch back to NPS at a later stage if their circumstances or preferences change.
Application Process and Important Deadlines
Interested employees can access enrolment and claim forms through the official portal at https://npscra.nsdl.co.in. Alternatively, physical forms can be submitted at respective Central Recordkeeping Agency system Nodal Offices. The Finance Ministry has directed all Nodal Offices to process applications strictly according to prescribed procedures.
It's important to note that the Unified Pension Scheme operates within the broader National Pension System framework, regulated by the Pension Fund Regulatory and Development Authority (PFRDA). This ensures continuity and regulatory oversight while providing enhanced benefits.
With the November 30, 2025 deadline just months away, the Finance Ministry emphasizes that timely application is crucial for employees wishing to take advantage of the benefits available under this new pension arrangement.
