Unified Pension Scheme: Extended deadline for NPS to UPS switch ends today. 5 things to know

The deadline for switching from the National Pension Scheme (NPS) to the Unified Pension Scheme (UPS) ends today, September 30. This is your final opportunity to make the transition for eligible subscribers.

The original deadline to opt for UPS was extended, but today is the final day to make the switch. Central government employees, including those who joined service on or after April 1, 2025, and up to August 31, 2025, now have a one-time opportunity to migrate to UPS. The deadline ends today, September 30

UPS switch deadline ends today: 5 key things subscribers should know

1. The Unified Pension Scheme (UPS) offers certain benefits over NPS, including broader coverage and a more flexible retirement savings plan designed for various sectors, including government employees.
2. The Government has allowed a one-time, one-way switch facility for UPS subscribers to opt back to the NPS: With this option, employees will get one chance to switch back to NPS if they switch to UPS now but do not feel happy about it later during their service period.

3. As part of the transition to the UPS, Central Government employees need to fill out specific forms depending on their employment status. These forms are essential for the successful switch from the NPS to the UPS.

Form A2 is for existing Central Government employees who are currently covered under the NPS.

4. Only specific groups, such as current NPS subscribers in the public sector or those meeting certain age or income conditions, are eligible to make the switch.

The switch facility will also not be available in case of removal or compulsory retirement as a penalty.

"No switch facility to National Pension System shall be available in the cases of removal or dismissal or compulsory retirement from service as a penalty," the rules say.

5. The income tax benefits for UPS subscribers have been officially notified under the provisions of the Income Tax Act, 2025. These newly introduced tax advantages offer significant relief to individuals contributing to the UPS. One of the key benefits is the tax exemption on the lump sum amount received at the time of retirement, which is a major draw for employees opting for this scheme.