Mon Aug 25 18:33:09 UTC 2025: **Summary:**

The Indian government has introduced a one-time option for Central government employees under the National Pension System (NPS) to switch to the Unified Pension Scheme (UPS). The UPS, introduced on April 1, 2025, aims to provide assured payouts to employees. As of July 20, 2025, over 31,000 employees had opted for UPS. The switch option is available until one year before superannuation or three months before voluntary retirement. The government has extended retirement and death gratuity benefits under UPS and has aligned tax benefits with those available under NPS.

**News Article:**

**Govt Offers One-Time Switch from NPS to Unified Pension Scheme**

*New Delhi, August 26, 2025* – In a move aimed at providing more secure retirement benefits, the Finance Ministry announced yesterday a one-time, one-way switch facility allowing Central government employees under the National Pension System (NPS) to opt for the Unified Pension Scheme (UPS). The UPS, which provides assured payouts, was introduced on April 1, 2025.

According to an official memorandum, the switch facility is available to all Central government employees who have opted for UPS. They can exercise this option any time up to one year before their date of superannuation, or three months before voluntary retirement.

As of July 20, 2025, 31,555 Central government employees have already opted for UPS. The deadline for enrollment in the scheme is September 30, 2025. The government has clarified that retirement and death gratuity benefits have been extended under UPS, and tax benefits are aligned with those of the NPS. This ensures that employees who opt for UPS will be eligible for similar benefits under the Central Civil Services (Pension) Rules, 2021, or the Central Civil Services (Extraordinary Pension) Rules, 2023, in case of death during service or discharge due to invalidation or disablement.

The move comes as the government has dismissed proposals to restore the Old Pension Scheme. Officials said the UPS offers a viable alternative, providing assured returns and stability for pensioners.

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