One-time, One-way Switch facility from UPS to NPS made available to the Central Government Employees under specific conditions

 

The Ministry of Finance, Government of India, had notified the Unified Pension Scheme (UPS) for eligible Central Government employees vide Notification No. F. No. FX-1/3/2024-PR dated 24.01.2025. The Department of Financial Services (DFS) underlines that the last date for eligible employees and past retirees under NPS to opt for UPS is September 30, 2025. All eligible employees are urged to exercise their option well before the deadline to avoid any last-minute difficulties and to ensure timely processing of their requests. Employees who choose to remain in NPS cannot opt for UPS after this date.

Further, DFS has issued an Office Memorandum No. 1/3/2024-PR dated 25.08.2025, introducing a one-time, one-way switch facility for Central Government employees who have already opted for UPS, allowing them to revert to the National Pension System (NPS) under specified conditions:

1. Eligible employees under UPS can switch to NPS only once, and cannot switch back to UPS.
2. The switch must be exercised at least one year before superannuation or three months before voluntary retirement, whichever is earlier.

• III. The switch facility will not be allowed in cases of removal, dismissal, or compulsory retirement as a penalty, or where disciplinary proceedings are ongoing or contemplated.
   
• IV. Those who do not opt for the switch within the stipulated time will continue under UPS by default.

5. Employees who choose to remain in NPS cannot opt for UPS after 30th September 2025.

This initiative aims to provide Central Government employees with an informed choice in planning their post-retirement financial security. By opting for UPS, the employees retain their choice for switch to NPS at a later date.

Pension scheme choice: one-way switch permits eligible central employees to revert from UPS to NPS under specified conditions. Eligible Central Government employees and past NPS retirees must opt for the Unified Pension Scheme (UPS) by September 30, 2025, after which remaining in NPS precludes later entry into UPS. A one-time, irreversible switch from UPS back to the National Pension System (NPS) is permitted only once, to be exercised at least one year before superannuation or three months before voluntary retirement, and is excluded in cases of removal, dismissal, compulsory retirement as penalty, or ongoing or contemplated disciplinary proceedings.