Unified Pension Scheme: PFRDA notifies UPS new rules, applicable from April 1, 2025 ; Check eligibility, contribution, retiral benefits & more

Understanding the Applicability of the Unified Pension Scheme (UPS) as per Gazette Notification Dated 19.03.2025

 

The Government of India has issued a Gazette Notification dated March 19, 2025, introducing the Unified Pension Scheme (UPS). This scheme aims to provide a structured pension system for eligible Central Government employees. Below is a detailed look at the Applicability of the Unified Pension Scheme and options available under the UPS.

Applicability of the Unified Pension Scheme

Who Can Avail the Benefits of the Unified Pension Scheme?

The option to avail benefits under the UPS is available to the following categories of individuals:

1. Existing Central Government Employees

Employees currently in service as of April 1, 2025, and covered under the National Pension System (NPS) as per Section 20(1) of the Act, are eligible to opt for UPS.

2. New Central Government Recruits

Individuals who join Central Government services on or after April 1, 2025, will be automatically covered under the UPS.

3. Retired or Voluntarily Retired Employees & Spouses

The following individuals can also opt for the UPS:

• Central Government employees who were covered under the NPS and who have superannuated, voluntarily retired, or retired under Fundamental Rules 56(j) on or before March 31, 2025. (Note: Retirement under FR 56(j) must not be treated as a penalty under the Central Civil Services (Classification, Control, and Appeal) Rules, 1965.)
• The legally wedded spouse of a deceased subscriber who had superannuated or retired before exercising the option for UPS.

Timeline for Exercising the Option

Eligible employees must exercise their option to be covered under the UPS within the specified timelines:

For existing Central Government employees (Category 1) and retired employees (Category 3):

• Within three months from April 1, 2025, or any extended timeline allowed by the Central Government.

For new recruits in Central Government services (Category 2):

• Within 30 days from the date of joining, or within any extended timeline provided by the Central Government.

Finality of the Option

Once an eligible individual opts for the UPS, the decision is final and irrevocable. This ensures commitment to the new pension framework without the possibility of reconsideration.

The introduction of the Unified Pension Scheme marks a significant shift in the pension framework for Central Government employees. Whether you are a current employee, a new recruit, or a retired personnel, it is crucial to understand the implications of opting for UPS within the stipulated timelines. Stay informed and make the best decision for your financial future.

For further details, employees are advised to refer to the official notification or consult their respective HR departments.

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