The Finance Ministry has extended the deadline for Central government employees to opt for the Unified Pension Scheme (UPS) till 30 November, 2025. The decision comes after a muted response from employees currently covered under the National Pension System (NPS).
The decision has been formally cleared by the Finance Minister.
Introduced from 1 April, 2025, UPS serves as an alternative under the NPS framework. It guarantees assured payouts to Central government employees who choose it. Unlike the Old Pension Scheme (OPS), which assured 50 per cent of the last drawn basic pay as pension, the UPS is contributory. Employees contribute 10 per cent of their basic pay and dearness allowance, while the government contributes 18.5 per cent.
In a communication to the Pension Fund Regulatory and Development Authority (PFRDA), the Ministry said the extension was made after requests from employees and stakeholders. The move also factors in recent changes announced under UPS, including new provisions on resignation, compulsory retirement, tax exemptions and an option to switch.
The original deadline for opting into the scheme was 30 June, 2025. It was earlier pushed to 30 September, and has now been further extended to 30 November.
Despite the changes, response so far has been slow. As of 20 July, only 31,555 employees had enrolled. By the September deadline, just around one lakh out of 23 lakh eligible employees had opted for the scheme.
The PFRDA has been directed to make the necessary system updates and issue a circular to operationalise the new deadline. With more time now available, the government hopes a larger number of employees will consider the switch to UPS.
