The government introduced a one-time, one-way switch facility from the Unified Pension Scheme (UPS) to the National Pension System (NPS).
With this, the central government employees can opt for the UPS before September 30, 2025, for assured payouts and several benefits, according to a notification issued by the Ministry of Finance on Monday, August 25.
“It has been decided that a one-time, one-way switch facility from UPS to NPS shall be made available to all Central Government employees who have opted for UPS,” the notification stated.
“This switch facility may be exercised by UPS optees any time not later than one year prior to the date of superannuation or three months prior to the deemed date of retirement in case of voluntary retirement, as applicable,” the notification said.
The Finance Ministry further stated that similar provisions will be made for resignation and cases of Rule 56J, with minor modifications as necessary.
“If switch facility not exercised as per aforesaid timelines, the employee shall continue under UPS by default,” it added.
“The switch facility will not be allowed in case of removal, dismissal or compulsory retirement as a penalty or for cases where disciplinary proceedings are ongoing or contemplated,” the notification read further.
Once the switch facility is availed, the provisions of the PFRDA (Exit & Withdrawal under NPS) Regulations, 2015 will apply after which the employee will be eligible for assured payouts and UPS benefits.
“The Government’s differential contribution (4%) at default investment pattern will be worked out and shall be credited to the individual’s NPS corpus at the time of exit,” it added.
