Over 31,500 central government employees enroll in Unified Pension Scheme
What's the story
Over 31,555 central government employees have enrolled in the Unified Pension Scheme (UPS), as of July 20, 2025. The information was shared by Finance Minister Nirmala Sitharaman in a written reply to the Lok Sabha. She added that there are still some claims pending under this new pension scheme introduced on April 1, 2025.
Scheme details
UPS: A new option under National Pension System
Sitharaman further explained that the government introduced UPS as an option under the National Pension System (NPS) for central government employees. The scheme is designed to provide assured payouts to employees. As of July 20, 2025, a total of 7,253 claims have been received, with 4,978 processed for payment of benefits under UPS.
Enrollment extension
Deadline for opting into UPS extended
Responding to a separate question in the House, Minister of State for Finance Pankaj Chaudhary confirmed that as of July 20, 2025, 31,555 employees had opted for UPS. Sitharaman also said that the cut-off date to opt for this scheme was extended by three months till September 30, 2025. The decision was taken based on representations from employees and associations.
Benefit torsion
Additional benefits and eligibility criteria
Sitharaman said that 25,756 retired central government subscribers are eligible for additional benefits under UPS. These include those who have either superannuated or died, or retired under Fundamental Rules 56(j), on or before March 31, 2025. They should have completed 10 years or more of qualifying service and been covered under NPS. The government has extended 'Retirement gratuity and Death gratuity' under this scheme.
Benefit extension
Tax benefits and future plans for UPS
The government has also extended tax benefits to UPS as available to NPS under the Income Tax Act, 1961. However, Sitharaman clarified that there are no plans to extend such benefits to other pension schemes or sectors in the near future. This was in response to a question about extending similar benefits beyond the current scope of UPS under NPS for central government employees.