Unified Pension Scheme 2025- Check UPS vs NPS Benefits, Starting from April 1, 2025, a major overhaul of India’s pension schemes will be implemented. The central government has launched the Unified Pension Scheme (UPS),A detailed strategy that integrates components of the National Pension System (NPS) and the Old Pension Scheme (OPS).The UPS is designed to secure the financial future of central government employees by ensuring a stable and guaranteed post-retirement income.
Overview of Unified Pension Scheme 2025
| Details | Information |
| Name of the pension | Unified Pension Scheme |
| Launching Date | 1st of April, 2025 |
| Beneficiary | Employees of Central Govt. |
| Monthly Pension(minimum) | Rs. 10,000 |
| Eligibility | 10 years of service(minimum) |
| Contribution | Employee share: 10%, Government share: 18.5% |
| Additional benefit | Family pension, Lump-Sum Benefit |
About UPS (Unified Pension Scheme):
PFRDA- The Pension Fund Regulatory and Development Authority has put out new guidelines for the implementation of the UPS- Unified Pension Scheme under the National Pension System (NPS). The guideline, titled the PFRDA Regulations 2025, will take effect starting from April 1st,
2025. The UPS will be open to central government employees already covered under the NPS, recently appointed employees, and retired workers. Also, in case of the death of a retired NPS member, his/her spouse will be eligible to receive UPS benefits.
The Unified Pension Scheme is a newly designed pension plan that merges features of the NPS and the OPS. It guarantees a fixed monthly pension for employees post-retirement. With a higher contribution from the government compared to the NPS, UPS offers enhanced financial security and stability for central government employees, ensuring a steady income after they retire.
The main benefits of UPS are:
- Secured monthly pension
- Under the UPS, employees will be entitled to a monthly from the last 12 months of service after retirement the pension equivalent to 50% of their average basic salary.
- Employees having 10 to 25 years in service will get a pension on a pro-rata basis. Furthermore, the minimum pension amount has been fixed at Rs. 10,000 per month.
- Family pension
- In case of the employee’s death, their family will be provided with a family pension equal to 60% of the deceased employee’s last pension.
- Lump-sum Retirement benefits
- Upon retirement, the employee will be entitled to a one-time payment calculated at 10% of their basic pay and Dearness Allowance (DA) for each six months of service.
- Investment options
- UPS offers both individual corpus and pooled corpus options. Employee can choose their fund manager and investment pattern or accept the default lifecycle fund.
Unified Pension Scheme V/s New Pension System
| Parameter | UPS | NPS |
| Secured monthly pension | Yes | No |
| Secured contribution | 18.5% | 10% |
| Risk Level | Low | High |
| Option of investment | Secured Govt. Bond | Equity and Market based |
Who is Eligible for UPS?
The following categories meet the eligibility criteria for joining UPS:
- The employees from central government who are presently enrolled in the NPS.
- Employees who have been newly recruited and joined the service on or after 1st April 2025.
- Employees who have retired, either voluntarily or compulsorily, on or before March 31, 2025.
Application process for UPS
- Converting to the UPS is easy and can be accomplished either online or offline.
- To do it online, go to the certified CRA Page at https://npscra.nsdl.co.in
- Proceed to the migration page of UPS
- Choose UPS as the available pension option.
- Fill in the online form and submit the required information.
Conclusion of Unified Pension Scheme 2025
Enrollment in UPS can be done both online and offline.
The application forms will be approved by the relevant Pay and Account Officer(PAO).
Importantly, the decision to join UPS will be final and irrevocable.
Alternatively, one can get the physical UPS migration form, fill out the required information, and submit the same to the concerned government office.
| Home Page | TMBU |
| UPS Website Link | https://financialservices.gov.in/beta/en/ups |
| Gazette Notification on UPS | Notification PDF |
| FAQs for UPS | Download PDF |
| FAQs | PDF Link |
Currently, UPS is exclusively available for central government employees. State governments will independently determine the implementation of this scheme for their employees.
To get more detailed information about the Unified Pension Scheme, browse the official portal: https://npscra.nsdl.co.in.
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Balvinder Saaga, an engineering graduate from Delhi University, has been passionately working as a content writer since 2021. Hailing from Punjab, Balvinder specializes in crafting informative and engaging content with a core focus on education and social schemes
