The PFRDA notification outlines three categories of central government employees eligible for UPS | Image Generated By AI |
New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has issued regulations for the Unified Pension Scheme (UPS) under the National Pension System (NPS), set to take effect from April 1, 2025. With the implementation of UPS, central government employees will face a crucial one-time decision that will determine their retirement benefits permanently.
What is the Unified Pension Scheme (UPS)?
UPS is an assured pension scheme that will be available to central government employees currently covered under NPS. The scheme offers financial security post-retirement, but employees must carefully evaluate their options, as switching to UPS is irreversible.
The government initially notified UPS on January 24, 2025, for central government employees under NPS. The latest PFRDA notification provides operational details, including enrolment procedures, eligibility, and benefits.
Who Can Enroll in UPS?
The PFRDA notification outlines three categories of central government employees eligible for UPS:
Existing central government employees under NPS – Those in service as of April 1, 2025, can opt for UPS within a specified window.
New recruits from April 1, 2025, onwards – Employees joining central government services on or after this date will have the choice to enroll in UPS within 30 days of joining.
Retired employees and their spouses – Employees who were under NPS and retired on or before March 31, 2025, including those who superannuated, voluntarily retired, or retired under Fundamental Rules 56(j), can opt for UPS. In cases where the retiree has passed away before exercising the option, their legally wedded spouse can apply.
When to Apply for UPS?
Existing employees – They will have three months from April 1, 2025, to switch from NPS to UPS. The option to apply later will be available only if the government extends the deadline.
New recruits – Employees who join the central government after April 1, 2025, will need to enroll in UPS within 30 days of their appointment.
Retirees and spouses – They can apply from April 1, 2025, but must adhere to the specific guidelines set by PFRDA.
How to Apply for UPS?
Employees can apply online through the Protean CRA website (https://npscra.nsdl.co.in) starting April 1, 2025. All enrolment and claim forms will be available digitally. Additionally, a physical submission option will also be available.
Irreversible Decision: Employees Must Think Before Switching
PFRDA has emphasized that once an employee opts for UPS, the decision is final and irrevocable. Employees must thoroughly analyze their financial goals, retirement plans, and the benefits of UPS before making this critical choice.
With the transition deadline approaching, central government employees must weigh their options carefully, as their decision will shape their post-retirement financial security for life.
