1.22 lakh central govt employees opt for Unified Pension Scheme; one-time NPS switch allowed

As many as 1,22,123 central government employees, including recruits, serving staff, and past retirees, have opted for the Unified Pension Scheme (UPS) as of November 30, 2025, Parliament was informed on Monday.

Replying to an unstarred question by Lok Sabha MP Shri Janardan Singh Sigriwal, Minister of State for Finance Pankaj Chaudhary provided details on various aspects of the scheme.

On the question of whether the government had introduced a one-time, one-way switch facility allowing UPS employees to revert to NPS, Chaudhary said that such a facility has indeed been provided. Employees can switch back to NPS during their service, subject to certain conditions.

• Superannuation: Not later than 12 months before retirement.

• Voluntary retirement: Not later than 3 months before the deemed date of retirement.

• Resignation or compulsory retirement under FR 56(j) (non-penal): At the time of exit.

• The facility is not available in cases of dismissal, removal, compulsory retirement as a penalty, or if disciplinary proceedings are ongoing or contemplated.

When asked about the revised rules for assured payouts under UPS, Chaudhary said the government has notified the Central Civil Services (Implementation of UPS under NPS) Rules, 2025.

• Employees with 25 years of qualifying service receive an assured payout of 50% of the average basic pay drawn during the last 12 months prior to superannuation.

• Employees with 10–25 years of service receive proportionate payouts, with a minimum assured payout of ₹10,000 per month after 10 years of service.

Finally, on whether children are entitled to receive 60% of the assured family payout if the spouse is not alive, the minister clarified that children are not eligible. Instead, the legally wedded spouse receives 60% of the admissible pension, and alternative benefits for children under UPS are not provided.

The government emphasised that the UPS provides employees with financial security and assured pension benefits, while the one-time NPS switch ensures flexibility for those who wish to return to the contributory system.