NPS to UPS switch: Central govt employees will be able to switch from NPS to UPS, Details here

Jyoti — Wed, 02 Apr 2025 05:11:38 +0000

Central government employees will be able to switch to the recently launched new pension scheme from April 1, i.e. today. The new pension scheme is called Unified Pension Scheme (UPS).

Currently, central government employees come under NPS. This is a market linked pension scheme. Employees were demanding a guaranteed pension scheme for a long time. To fulfill their demand, the government announced UPS last year.

This is how you can switch

Central government employees need to go to the UPS migration page to switch to UPS . Then UPS has to be selected under NPS options. Employees can migrate through the Protean CRA portal (npscra.nsdl.co.in). There is also a facility to use the physical form for submission.

Highlights of UPS

UPS is a structured pension payout scheme. It is based on the service period of the employees. Under this, employees who have worked for 25 years or more will get 50 percent of their average basic salary of the last 12 months as pension. If an employee’s service period is more than 10 years and less than 25 years, then he will get pension in the same proportion. This means that in this scheme, the longer the period of service, the higher the pension.

Minimum 10,000 pension per month

If an employee has completed a minimum 10-year service period, he will be guaranteed a pension of at least Rs 10,000 per month. Under UPS, the employee contributes 10 per cent of his basic salary (plus DA) to the pension fund. The government will also contribute the same amount. This means that a total of 20 per cent of his salary will be invested. The default scheme introduced by the government will manage this money. But employees will also have the option to invest with private pension fund managers.

60% pension to the family on the death of the pensioner

In UPS, financial support will also be available to the wife or husband of the pensioner. This means that if the pensioner dies, his wife or husband will get 60 percent of the pension. This will ensure that the pensioner’s family will not have to face any financial difficulties. When the employee retires, he will get pension from his deposited fund. This will be like the systematic withdrawal plan of a mutual fund. If this fund is exhausted before the death of the pensioner or his wife or husband, then the pension money will be available from the common pool managed by the government. Currently UPS is only for central government employees.