Switch from UPS to NPS: Last date for opting out
The government just announced that eligible central employees can now make a one-time, irreversible switch from the Unified Pension Scheme (UPS) to the National Pension System (NPS).
You have until a year before retirement or three months before voluntary retirement to decide.
If you're facing dismissal or disciplinary action, this option isn't for you.
What's the difference?
This move aims to provide people with more control over their retirement plans.
UPS offers a fixed pension—50% of your average basic pay if you've worked at least 25 years—but only about 31,500 folks have signed up since it launched in April 2025.
NPS, on the other hand, works kind of like an investment fund: your returns depend on market performance and there's no guaranteed payout.
If you don't opt for the switch, you'll stay with UPS by default.
This reform is part of ongoing efforts to enhance stability and flexibility for government workers' futures.