UPS-NPS switch November 30 deadline: 96% of central govt staff continue under National Pension System

Despite the option to switch, the vast majority of central government employees are sticking with the National Pension System (NPS) over the Unified Pension Scheme (UPS).

The highest number of migrations came from the civil services, followed by the railways, postal, and defence sectors:

• Civil Services: 38,569

• Railways: 23,529

• Postal: 18,303

• Defence: 11,144

UPS-NPS switch November 30 deadline

The previous deadline was set to expire on September 30. This marks the second extension of the cut-off date, which was initially June 30, 2025.

The Ministry of Finance granted the extension following requests from stakeholders, citing recent enhancements to the UPS (such as new benefits and tax exemptions) that require employees more time to evaluate their options.

Govt expands retirement fund choices for central employees

For those seeking the lowest risk and fixed returns, Scheme G allocates 100% of funds to Government securities. At the opposite end, the LC-75 option offers the highest equity exposure, with a maximum of 75% equity, which gradually reduces as the employee ages, starting from age 35.

Moderate-risk options include LC-50 and the BLC (Balanced Life Cycle), both capping equity at 50%.

For those who prefer a lower exposure, LC-25 caps equity at 25% and also begins tapering at age 35.