Deadline to opt for UPS extended; govt employees get more time to decide

Finance Ministry extends UPS enrolment till November 30, giving central government staff and retirees more time to weigh pension choices

The Finance Ministry has given central government employees two more months to opt for the Unified Pension Scheme (UPS), moving the deadline from September 30 to November 30 so that people get more time to weigh their options.

Why the extension?

The ministry’s Department of Financial Services, in a communication to the Pension Fund Regulatory and Development Authority (PFRDA), said the extension was given in response to requests from staff unions and retirees. The ministry noted that several revisions, such as tax exemptions, switching between National Pension Scheme (NPS) and UPS, and rules for resignation or compulsory retirement, were announced only recently. Employees and retirees had sought more time to evaluate these changes before making a once-in-a-career decision.

 

Who can opt for UPS

Existing central government employees have been covered under NPS since January 1, 2004.

 

• Past retirees. 
• Legally wedded spouses of deceased retirees. 
• How UPS differs from NPS

UPS was notified in January 2025 and became operational from April 1. It blends the certainty of the old pension scheme with the contributory model of NPS.  ALSO READ | UPS or NPS: Which retirement plan fits your future? Deadline hits tomorrow 

Key features of UPS:

Guaranteed pension of 50 per cent of average basic pay of the last 12 months (after 25 years of service)

 

• Minimum monthly pension of Rs 10,000 
• Family pension of 60 per cent for spouses 
• Inflation-linked dearness relief 
• Contributory model: 10 per cent employee contribution, 18.5 per cent government share 
• By contrast, NPS remains market-linked, with payouts varying based on investment returns.

 

Making a choice

 

For risk-averse employees, UPS offers predictability and assured retirement income, closer to the old pension model. For those willing to ride market cycles, NPS still promises potentially higher returns in the long run.

 

Retirement planning is a big decision. With this extension, employees now have until November 30 to carefully evaluate the schemes and make a choice that could shape their financial security for decades after superannuation.