NPS to UPS conversion: Pensioners to get Public Provident Fund interest rate on arrears

"The provisions of Unified Pension Scheme will also be applicable, mutatis mutandis to past retirees of National Pension System, who have superannuated before the date of operationalising of Unified Pension Scheme. Such superannuated employees will be paid arrears for the past period along with interest as per Public Provident Fund rates," the official UPS notification dated January 24, 2025 said.

As per the notification, the arrears will be paid to such retired employees after adjusting the withdrawals made by them till the time of switch from NPS to UPS.

"The monthly top-up amount for such superannuated employees, to be determined by the Pension Fund Regulatory and Development Authority, will be paid after adjusting the withdrawals made by, and annuities paid to, them," the notification said.

What’s UPS?

The UPS scheme offers an assured pension on retirement after a minimum qualifying period.

According to the notification, existing central government employees under the national pension system can choose to either take the unified pension scheme option under the NPS or continue with the National Pension System without the unified pension scheme. This option will also be available to future employees of the central government.

The assured pension under UPS will be available on retirement with following conditions:

• On retiring after qualifying service of 10 years

• If the Government retires an employee under the provisions of FR 56

• On voluntary retirement after a minimum qualifying service period of 25 years. In this case, however, assured pension will be provided from the date such such employee would have superannuated if the service period had continued till superannuation.

UPS will not be available in case of removal or dismissal from service or resignation of the employee.