Finance Ministry Urges Quick Switch to Unified Pension Scheme

The Finance Ministry has urged central government employees to transition to the Unified Pension Scheme (UPS) well before the September 30 deadline, allowing ample time for processing their requests. This initiative ensures employees benefit from assured payouts through the newly introduced retirement scheme.

Starting April 1, 2025, the UPS will be an available option for central government employees under the existing National Pension System (NPS), offering a beneficial package including retirement and death gratuities. Importantly, employees must decide by September 30, 2025, to transition from NPS to the UPS, and those opting for the UPS will have an exclusive one-time switch facility to revert back.

Additionally, similar tax benefits offered under the NPS are extended under UPS as per the Income Tax Act, 1961. The Finance Ministry also clarified that benefits under CCS Pension Rules are applicable, providing added security to employees' families in cases of death or invalidation during service.

(With inputs from agencies.)