Deadline Extended: Unified Pension Scheme Adoption Gains More Time

The Finance Ministry, addressing a lackluster response, has extended the deadline for central government employees to opt into the Unified Pension Scheme (UPS) until November 30, 2025. Initially set for September 30, the extension follows a wave of recent UPS amendments and appeals from stakeholders for more time to consider these benefits.

The decision, communicated to the Pension Fund Regulatory and Development Authority (PFRDA), allows eligible existing employees, past retirees, and legally wedded spouses of deceased retirees additional months to make their choice regarding UPS participation. The Finance Minister has approved the extension formally, underscoring the need for a thoughtful approach to this substantial pension transition.

The UPS, introduced as an option under the National Pension System (NPS) since April 1, 2025, assures payouts while remaining contributory, with employee contributions set at 10% of basic salary and the dearness allowance, against a government contribution of 18.5%. To date, only a small fraction of the total eligible employees has opted for UPS, highlighting the necessity of extended deadlines to maximize participation.

(With inputs from agencies.)