Central govt staff in foreign service or on deputation can fill Form A2 for assured pension: FinMin

Central government employees who are posted in the Foreign Service or on deputation in other organisations, who wish to opt for an assured pension under the Unified Pension Scheme (UPS), can fill Form A2 before the September 30 deadline, the Ministry of Finance said on Thursday, September 25.

“The Central Government employees who are on deputation/foreign service to an organisation which is not a Central Government office and are unable to apply for UPS, may physically submit the duly filled Form A2 to the respective nodal office of their parent organisation,” the finance ministry said.

“The nodal office will thereafter process the migration to UPS through the Central Recordkeeping Agency (CRA) system as per the prescribed procedure,” it added.

UPS is applicable to new recruits joining the central government services on or after April 1, 2025. Existing central government employees are also allowed to switch from the National Pension System (NPS) to UPS.

The deadline for eligible employees and past retirees to opt for UPS is September 30, 2025. Employees who want to opt for UPS must do so before this month ends.

Meanwhile, new joinees in the central government can submit Form A1 to opt for UPS. All employees who joined the central government service on or after April 1, 2025 and wish to opt for the UPS may physically submit the duly filled Form A1, as per the Pension Fund Regulatory and Development Authority (PFRDA).

UPS and NPS

The UPS, notified by the Ministry of Finance on January 24, 2025 offers a minimum assured pension to central government employees, providing greater stability and predictability. It was implemented on April 1, 2025.

The scheme is available to new recruits joining the central government services on or after April 1, 2025 and also allows existing employees under NPS to switch to UPS.

While UPS is also market-linked like the current National Pension System (NPS), it assures a minimum guaranteed payout without DR, covering inflation and longevity risks. Under UPS, subscribers will get an assured monthly pension equal to 50% of the average basic salary drawn in the last 12 months of service.

NPS, on the other hand, provides greater flexibility and offers employees a choice of pension fund managers, investment schemes, partial withdrawal options and several annuity plans. The only downside is that it doesn’t offer a guaranteed pension.

The PFRDA has urged all eligible employees to exercise their option well before the deadline to avoid any last-minute issues and to ensure that their request is processed in a timely manner.