UPS : Unified Pension Scheme (UPS) 2025 – Full Details, Eligibility & Online Apply Process

UPS : Unified Pension Scheme (UPS) 2025 – Full Details, Eligibility & Online Apply Process

The Government of India has introduced a new Unified Pension Scheme (UPS) for central government employees, effective from April 1, 2025. This scheme aims to provide a more secure and predictable retirement income, combining the best features of the Old Pension Scheme (OPS) and the National Pension System (NPS). The UPS offers assured pension benefits, making it one of the most significant reforms in government employees’ social security in recent years.

What is the Unified Pension Scheme (UPS)?

The Unified Pension Scheme (UPS) is a defined benefit pension plan introduced for central government employees. Under this scheme, the employee receives an assured pension of 50% of their last drawn basic pay, provided they complete the required service period. It is designed to address concerns raised about the market-linked risks under the NPS and ensure financial stability for employees after retirement.

The UPS will apply to all new central government employees joining on or after April 1, 2025, while existing employees under NPS are also given a one-time option to switch to UPS within the stipulated time.

Key Features of UPS

  • Assured Pension: Employees will receive 50% of the average basic pay (including DA) of the last 12 months as their monthly pension after retirement.

  • Minimum Pension: Employees completing at least 10 years of service will be eligible for a minimum pension of ₹10,000 per month.

  • Government Contribution: The government will continue to contribute an amount similar to the employee’s contribution (10% of basic pay + DA).

  • Dearness Relief (DR): Pension will be revised periodically based on the All India Consumer Price Index (AICPI-IW) to protect against inflation.

  • Family Pension: In case of the employee’s death, the family is entitled to 60% of the employee’s pension as family pension.

  • Lump-Sum & Gratuity: Employees will also receive gratuity and other retirement benefits similar to the old system.

Eligibility Criteria

  1. Central Government Employees who are currently under the National Pension System (NPS) as of April 1, 2025, can opt for UPS.

  2. New Employees joining the central government on or after April 1, 2025, will automatically come under the Unified Pension Scheme.

  3. To qualify for full pension benefits, an employee must complete 25 years of service. For partial or minimum pension, at least 10 years of service is required.

Benefits of UPS

  • Financial Security After Retirement: The assured 50% pension eliminates uncertainty caused by market fluctuations under NPS.

  • Inflation Protection: Regular Dearness Relief ensures the pension value keeps pace with rising prices.

  • Family Protection: Family pension ensures dependents are financially secure.

  • Stable Contribution: Employees continue contributing 10% of their salary while the government matches it, ensuring sustainable fund growth.

  • Switching Option: Employees who initially choose UPS will have a one-time option to revert to NPS, as per recent government clarification.

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How to Apply Online for UPS

The online application for UPS can be done through the NSDL CRA (Central Recordkeeping Agency) portal, which also manages NPS accounts.

Step-by-Step Application Process

  1. Visit the official NPS/CRA portal at https://www.npscra.nsdl.co.in.

  2. Go to the Unified Pension Scheme (UPS) section.

  3. Choose the appropriate form:

    • Form A1 – for new government employees registering under UPS.

    • Form A2 – for existing NPS employees opting to switch to UPS.

  4. Fill in all the required details like your PRAN number, department, salary details, and DDO information.

  5. Submit the form online for verification.

  6. The Drawing and Disbursing Officer (DDO) will verify and forward it to the Pay and Accounts Office (PAO) for final approval.

  7. Once approved, the employee’s pension account will be migrated to UPS.

Offline Option

Employees facing technical issues while applying online can submit the physical forms (A1 or A2) to their DDOs. The government has extended the deadline for physical submissions up to Oct 30, 2025.

Conclusion

The Unified Pension Scheme (UPS) marks a major milestone in India’s pension reforms, ensuring that government employees enjoy a stable, inflation-adjusted, and predictable income after retirement. With its blend of guaranteed benefits and government contribution, UPS offers peace of mind to lakhs of employees who were earlier concerned about NPS’s market risks. Eligible employees should apply before the deadline to ensure seamless transition and future financial security.

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