Unified Pension Scheme implementation rules notified with UPS to NPS switch timeline, conditions: Explained

The Department Pension and Pensioners' Welfare (DoPPW) has notified the Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System) Rules, 2025.

The UPS implementation rules apply to government servants, including civilian government servants in the Defence Services, appointed substantively to civil services and posts in connection with the affairs of the Union on or after January 1, 2025, and opt for the Unified Pension Scheme as an option under the National Pension System (NPS).

What do the UPS implementation rules say about switching from UPS to NPS?

"A subscriber governed under these rules, who has exercised an option for enrollment under the Unified Pension Scheme under the National Pension System shall have a one-time switch facility option for reverting to the National Pension System at any time during the service of the subscriber," the rules say.

However, the switch option should be exercised as per the following timelines:

• Normal retirement: 12 months before the date of superannuation
• Voluntary retirement: Three months before the deemed date of voluntary retirement
• Resignation/compulsory retirement: At the time of resignation or compulsory retirement under Fundamental Rule 56(j), which is not a penalty.

Who cannot switch back from UPS to NPS?

The UPS implementation rules have clarified that the switch facility cannot be exercised in cases where departmental or judicial proceedings are pending or contemplated against the subscriber.

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.

What will happen if the employee fails to exercise the switch option?

"If no option is exercised by the subscriber for switching over to the National Pension System within the stipulated time, the subscriber shall continue to be governed under the provisions of the Unified Pension Scheme," the rules say.

Who is not covered under UPS implementation rules?

The UPS implementation rules do not apply to the following employees working for the Government or Government-affiliated bodies:

• Railway servants
• Persons in casual and daily rated employment;
• Persons paid from contingencies;
• Members of the All India Services;
• Persons locally recruited for services in diplomatic, consular or other Indian establishments in foreign countries;
• Persons employed on contract;
• Persons whose terms and conditions of service are regulated by or under the provisions of the Constitution or any other law for the time being in force;
• Persons to whom the Central Civil Services (Pension) Rules, 2021 apply in accordance with any special or general order issued by the government; and
• Persons to whom the Central Civil Services (Implementation of National Pension System) Rules, 2021 apply and who have not opted for Unified Pension Scheme.

The UPS implementation rules are effective from September 2, 2025.