Six states evince interest to join UPS, says PFRDA Chairman S Ramann

Recently the central government extended the deadline for eligible employees, past retirees, and legally wedded spouses of deceased retirees to exercise their option to join the UPS till 30 November

The Unified Pension Scheme (UPS) adoption rate has risen to over 4.35 per cent, with more than 1,00,000 people out of 2.3 million eligible individuals opting for it, Pension Fund Regulatory and Development Authority (PFRDA) Chairman S Ramann said in an exclusive interview with Business Standard on Monday. He also said that six states had approached the PFRDA for help in adoption of the scheme. 

“More than 1,00,000  people have opted so far out of 2.3 million eligible for the UPS. Many are from the paramilitary and railways, where employees often don’t have the time to attend outreach programmes. It’s only a matter of time before adoption rises. We have already extended the deadline as people generally requested for more time,” said Ramann. 

Recently, the central government extended the deadline for eligible employees, past retirees, and legally wedded spouses of deceased retirees to exercise their option to join the UPS till November 30, 2025. 

“Among the states, six have approached us to adopt the UPS. These states are UP, Odisha, Haryana, Tamil Nadu, Goa, and Chhattisgarh. All of them are very clear about their intention to implement the UPS. Our team has already visited UP," said Ramann. He further said that the UPS is a very well-designed product — essentially an upgraded version of the National Pension System (NPS) — offering an inflation shield along with all the benefits of NPS. “Everyone will eventually come to appreciate the UPS. The scheme even allows you to go back to the NPS if the market performs well, giving you the best of both worlds. The option to switch back will also help improve adoption,” Ramann added. 

“The real challenge for us now is to create something similar for the private sector. Our focus will be on designing a comparable product — perhaps under a different name — for non-government employees as well,” he said. The UPS, implemented from April 1, 2025, initially gave a three-month window till June 30 for eligible persons to exercise their choice. This was later extended to September 30. With the fresh extension, eligible individuals now have two more months to opt in. “Recent positive changes in the scheme — including the switch option, additional benefits in cases of resignation and compulsory retirement, as well as tax exemptions — have prompted renewed interest among employees and retirees,” he added. 

Earlier, the finance ministry had informed that as of July 20, 2025, a total of 31,555 employees had opted for the scheme. In a separate reply in the Lok Sabha in July 2025, the finance ministry informed that as per the eligibility criteria, there are 25,756 retired central government subscribers eligible to receive additional benefits under the UPS. 

Finance Minister Nirmala Sitharaman further stated that as on July 20, 7,253 claims had been received, out of which 4,978 had been processed for payment of benefits under the UPS. 

The UPS guarantees employees 50 per cent of their average basic pay over the last 12 months before retirement as pension, provided they have completed a minimum qualifying service of 25 years. This is in contrast to the market-linked returns under the NPS.