NPS to UPS migration: 25,756 retired Central Govt employees eligible, only 5000 opted-in till July 20

As many as 25,756 retired Central Government employees are eligible to receive additional benefits under the Unified Pension Scheme (UPS) by migrating from the National Pension System (NPS), according to Finance Minister Nirmala Sitharaman.

These eligible subscribers are those employees who have either superannuated or deceased or retired under Fundamental Rules 56(J) on or before March 31, 2025, after completing 10 years or more of qualifying services.

"As per eligibility criteria, there are 25,756 retired Central Government subscribers eligible to receive additional benefits under UPS. These eligible subscribers are those Central Government employees who have either superannuated or deceased or retired under Fundamental Rules 56(j), on or before 31st March 2025, after completing ten years or more of qualifying service and were covered under National Pension System (NPS)," Sitharaman said in a written response to a query in the Rajya Sabha on July 28, 2025 in the Lok Sabha.

Sitharaman further said the Government has received around 7253 claims related to UPS till July 20, 2025, out of which nearly 5000 claims have been processed for payment of benefits under UPS.

"As on 20th July, 2025, 7,253 claims have been received and out of which 4,978 claims have been processed for payment of benefits under UPS," she said.

The Government has introduced UPS as an option to provide an assured pension to employees currently covered under the National Pension System (NPS). Such employees can make a one-time switch from NPS to UPS till September 30, 2025.

Currently, there is no proposal under consideration by the Central Government to extend such benefits to other pension schemes or sectors, Sitharaman said.

The Government has extended the cut-off date to opt for UPS for three months up to 30th September, 2025.

The Government has also extended the benefit of 'Retirement gratuity and Death gratuity' under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021 to the Central Government employees covered by UPS.

Further, the Government employees who opt for UPS will be eligible for an option of availing benefits under the CCS (Pension) Rules, 2021 or the CCS (Extraordinary Pension) Rules, 2023, in the event of death of their death during service or discharge on the ground of invalidation or disablement.

The Government has also extended tax benefits to UPS as are available to NPS under the Income Tax Act, 1961.