New Delhi: The Ministry of Finance has launched a one-time, one-way switch facility allowing central government employees to shift from the newly introduced Unified Pension Scheme (UPS) to the National Pension System (NPS).
Eligibility and Conditions
According to the official notification, the switch option will be available up to one year before superannuation or three months before voluntary retirement. Employees facing dismissal, removal, or disciplinary proceedings will not be eligible for this facility.
Impact on Benefits
Once exercised, the switch will cancel all UPS benefits, including assured payouts. However, the government’s 4% differential contribution will be added to the employee’s NPS corpus at the time of exit. Officials said this measure will strengthen NPS as a sustainable retirement solution while ensuring flexibility for employees.
Unified Pension Scheme Rollout
The government introduced UPS on April 1, 2025, as an additional option under NPS for central government employees. The scheme assures fixed payouts after retirement, making it attractive to many subscribers.
Current Enrollments
By July 20, nearly 31,555 central government employees had enrolled in UPS. The deadline for enrollment remains September 30, 2025. The Ministry expects the new switching facility to balance assured security with long-term market-linked growth for employees.
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