PFRDA Extends One-Time Option For Central Govt Employees To Switch To UPS

The Pension Fund Regulatory and Development Authority has announced an extension of the one-time option for certain central government employees to migrate from the National Pension System to the Unified Pension Scheme, the Union government announced on Tuesday.

The option would now be available to employees who joined central government services between April 1 and Aug. 31, and who had initially opted for NPS, the government said in a press release.

These employees will be able to exercise the switch to UPS on or before Sept. 30, in line with the deadline already prescribed for other eligible categories under the scheme.

According to the PFRDA, those who opt for UPS will still retain the option to switch back to NPS at a later stage. Those who change their mind later are not locked in forever -- they can switch back to NPS, one year before retirement or three months before opting for voluntary retirement.

The extension is intended to provide central government employees with an informed choice for long-term financial planning and retirement security, ensuring parity across categories of service entrants.

The UPS was notified by the Ministry of Finance on Jan. 24. The scheme seeks to provide greater post-retirement security while preserving flexibility for employees.

According to officials, the CCS (Implementation of UPS under NPS) Rules, 2025 — notified on Sept. 2 — cover a wide range of issues. For employees joining UPS, the rules spell out how they can enrol and exercise their option in a clear manner, the government said in a statement earlier this month.

In case there is any delay by the authorities in registering someone under UPS or crediting their contribution on time, the employee will be compensated, ensuring they don't lose out because of administrative lapses, the statement said.