Finance Ministry launches one time switch facility from UPS to NPS
The Ministry of Finance has introduced a one-time, one-way switch facility from the newly introduced Unified Pension Scheme (UPS) to the National Pension System (NPS).
New Delhi, 26 August 2025: The Ministry of Finance has introduced a one-time, one-way switch facility from the newly introduced Unified Pension Scheme (UPS) to the National Pension System (NPS).
The facility is available to UPS subscribers up to one year before their superannuation or three months before voluntary retirement, as per official notification. Employees facing dismissal, removal, or disciplinary action will not be eligible.
The employees will no longer be entitled to UPS benefits once the switch has been done, including assured payouts. Meanwhile, the government’s 4% differential contribution will be added to the individual’s NPS corpus at the time of exit.
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The steps taken will provide pension benefits and flexibility, along with reinforcing NPS as a long-term retirement solution. From April 1, 2025, the government has introduced UPS as an option under the National Pension System for central government employees. UPS will provide assured payouts to the employees.
Till July 20, around 31,555 central government employees have opted for the Unified Pension Scheme. The last date to enroll under the scheme is September 30. The Unified Pension Scheme (UPS) has been introduced as an option under NPS for the employees of the Central government who are covered under the NPS.
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