One-time Option for Central Government Employees to Opt for Unified Pension Scheme (UPS)
Date: September 14, 2025
What the Circular Says (Summary)
On 14 September 2025, PFRDA published a circular clarifying a one-time option for certain Central Government employees who joined service between 01.04.2025 and 31.08.2025 and who had previously been placed under the National Pension System (NPS) to the Unified Pension Scheme (UPS).
Key Highlights
- UPS notification timeline: Notified by Ministry of Finance on 24 Jan 2025; operational regulations issued by PFRDA on 19 Mar 2025; DoPT rules notified on 02 Sep 2025.
- Who is eligible: Central Government employees who joined on or after 01 April 2025 and up to 31 August 2025, and who are currently in NPS.
- Last date to opt: The option can be exercised until 30 September 2025.
- Legal authority: Issued under Section 14 of the Pension Fund Regulatory and Development Authority Act, 2013, and effective immediately.
Why This Matters
The transition from NPS to UPS affects long-term retirement benefits and therefore is a significant choice for employees who joined during this rollout period.
What Employees Should Do
- Compare the features and benefits of NPS and UPS.
- If you decide to switch, follow the specified process and submit the required forms.
- Ensure your option is submitted no later than 30 September 2025.
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