The central government has announced a one-time opportunity for employees to switch their pension plan from the Unified Pension Scheme (UPS) back to the older National Pension System (NPS). Here’s what you need to know:


1 One-Time Switch Opportunity

  • Eligible employees can move from UPS to NPS only once.
  • The last date to make this switch is September 30, 2025.


2 Who Can Apply?

  • Central government employees enrolled in UPS.
  • Employees up to one year before retirement or up to three months before voluntary retirement.


3 Who Cannot Apply?

  • Employees facing disciplinary action, dismissal, removal, or compulsory retirement as a penalty are not eligible.


4 Important Considerations Before Switching

  • Loss of Assured Pension: UPS guarantees a fixed monthly pension. Switching to NPS means your pension will now be market-linked and may vary based on investment performance.
  • Government Top-Up: The government will contribute an extra 4% of your contribution to your NPS account, which will be paid at retirement.


5 Why This Move?

  • Provides flexibility to employees who may want to return to the more established NPS.
  • Government departments have been instructed to inform all eligible staff about this opportunity.


6 Final Takeaway

This is a limited-time, permanent decision, so employees must carefully weigh the trade-off between guaranteed UPS pension vs. potentially higher NPS returns. One choice now can impact your retirement benefits significantly.

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Kokila Chokkanathan

26/08/2025 09:30 AM