Unified Pension System: Govt finalising CCS (UPS) Rules 2025 for pensioners

The central government is set to finalise CCS (UPS) Rules 2025 in the coming days, V. Srinivas, Secretary (Pension), Pension & Pensioners’ Welfare, said at the 10th anniversary of Anubhav Awards on Monday, August 18.

The centre has also introduced simplified and comprehensive National Pension System (NPS) and Extra-Ordinary Pension (EOP) rules for pensioners.

“….the CCS (Pension) Rules, the CCS (NPS) Rules, the CCS (EOP) Rules, the CCS (Gratuity) Rules have been comprehensively revised and simplified to help Pensioners Welfare. The CCS (UPS) Rules 2025 are being finalized for issue in coming days,” he said in his address.

CCS rules refer to a set of rules, regulations and service conditions provided by the government for central civil services.

What is the Unified Pension Scheme (UPS)?

The Unified Pension Scheme, under the National Pension System (NPS), is a government-backed retirement plan launched on April 1, 2025 as an optional scheme for Central Government employees aimed at providing a predictable and stable post-retirement income by offering an assured payout.

In UPS, the employee's contribution is 10% of their basic pay and Dearness Allowance (DA), while the government contributes a matching amount (with an additional contribution estimated at 8.5% of the Basic Pay and DA into a pool corpus).

Employees already under NPS as of April 1, 2025 and new Central Government employees who joined after April 1, along with past retirees (or legally wedded spouses of deceased NPS subscribers) who retired (or superannuated) before March 31, 2025 are eligible for UPS. To opt in for UPS, employees or retirees must apply by September 30, 2025, and new recruits must opt in within 30 days of joining.

UPS offers a guaranteed pension payout, in which employees get:

• 50% of the average basic pay of the last 12 months before retirement, after a minimum of 25 years of qualifying service (for 10–25 years of service, a proportionate payout is given)
• A minimum guaranteed payout of ₹10,000 per month for employees who have at least 10 years of service

At retirement, employees can either withdraw up to 60% of the accumulated corpus as a lump sum, and the remaining portion is used to purchase an annuity for a guaranteed monthly pension.

The UPS is aimed at offering a hybrid system under the NPS with assured payouts and financial predictability to address concerns like long-term sustainability and inflation protection.