NPS subscribers can now switch to Unified Pension Scheme—Here's how
What's the story
Central government employees currently enrolled in the National Pension System (NPS) now have a window to transition to the newly introduced Unified Pension Scheme (UPS), effective from April 1, 2025.
The scheme promises pension benefits and is available to all eligible employees, including those with more than a decade of service.
The Pension Fund Regulatory and Development Authority (PFRDA) has simplified the switching process between the two schemes for better retirement benefits for employees.
Benefits
UPS: A boon for government employees
The Unified Pension Scheme (UPS) aims to ensure financial security after retirement with guaranteed pension benefits.
The central government launched it on August 24, 2024.
The scheme is expected to benefit approximately 23 lakh central government employees. It also covers new employees joining on or after April 1, 2025, and retired employees who were part of the NPS before March 31, 2025.
Pension details
How much pension will employees get?
Under the UPS, employees with over 10 years of service are assured a pension of ₹10,000/month.
Those with 10-25 years of service will get a pension in proportion to their years served.
The scheme mandates central government employees to contribute 10% of their basic salary and dearness allowance, which is matched with an equal contribution from the government.
Switching process
How to switch to UPS?
Switching to the Unified Pension Scheme (UPS) is a simple process, both online and offline.
To apply online, employees can visit the official CRA portal at npscra.nsdl.co.in, head to the UPS migration page, and choose UPS from available pension options.
For offline registration, they can pick a physical UPS migration form and submit it at their respective government office after filling in all required details.