NEW DELHI – The Ministry of Finance has said that September 30, 2025, will be the last date for eligible central government employees and retirees under the National Pension System (NPS) to switch to the Unified Pension Scheme (UPS).
The Department of Financial Services (DFS) urged employees to make their choice before the deadline to avoid delays in processing. Those who do not opt in will remain under the NPS by default and will not be able to join UPS after that date.
In addition, the ministry has introduced a one-time, one-way switch facility for central government staff who have already opted for UPS, allowing them to return to NPS under certain conditions.
According to the DFS memorandum issued on August 25, 2025, the switch must be exercised at least a year before retirement or three months before voluntary retirement, whichever comes earlier.
The option will not be available to employees facing dismissal, removal, or compulsory retirement as a penalty, or where disciplinary action is pending or contemplated.
Employees who choose to return to NPS cannot later rejoin UPS, the ministry said.
The UPS was notified in January 2025 as an alternative to the NPS, which has been in place since 2004. Officials have said the new scheme is intended to give government employees more flexibility in planning for post-retirement income while retaining defined benefits in certain cases.
The finance ministry said the latest move is aimed at providing clarity and choice for employees, but warned that the decisions taken before the September deadline would be final and binding.
