Union Finance Ministry introduces one-time switch facility from UPS to NPS

Union Finance Ministry has introduced a one-time one-way switch facility from the newly introduced Unified Pension Scheme (UPS) to the National Pension System (NPS). According to an official notification, this facility is available to UPS subscribers up to one year before their superannuation or three months before voluntary retirement.
 
Employees facing dismissal, removal, or disciplinary action will not be eligible. Once the switch is exercised, employees will no longer be entitled to UPS benefits, including assured payouts. The government’s 4 per cent differential contribution will be added to the individual’s NPS corpus at the time of exit. This move is aimed at streamlining pension benefits and providing flexibility while reinforcing NPS as a long-term retirement solution. From April 1, 2025, the government has introduced UPS as an option under the National Pension System for central government employees.
 
UPS will provide assured payouts to the employees. Around 31,555 central government employees have opted for the Unified Pension Scheme till July 20, and the last date to enrol under the scheme is September 30. UPS has been introduced as an option under NPS for the employees of the Central government who are covered under the NPS.