New Delhi, Sep 18 The Finance Ministry on Thursday urged all Central government employees and past retirees under the National Pension Scheme (NPS) who wish to switch to the Unified Pension Scheme (UPS) to exercise their option well ahead of the September 30 deadline to avoid being caught up in a last-minute rush.
"All eligible employees are urged to exercise their option well before the deadline to avoid any last-minute difficulties and to ensure the timely processing of their requests. Employees who choose to remain in the NPS cannot opt for the UPS after this date," a Finance Ministry statement said.
The ministry’s Department of Financial Services has issued an Office Memorandum No. 1/3/2024-PR dated August 25, 2025, introducing a one-time, one-way switch facility for Central government employees who have already opted for UPS, allowing them to revert to the NPS under specified conditions.
Eligible employees under the UPS can switch to the NPS only once and cannot switch back to the UPS, the statement said.
The switch must be exercised at least one year before superannuation or three months before voluntary retirement, whichever is earlier.
The switch facility will not be allowed in cases of removal, dismissal, or compulsory retirement as a penalty, or where disciplinary proceedings are ongoing or contemplated.
Those who do not opt for the switch within the stipulated time will continue under the UPS by default.
Employees who choose to remain in the NPS cannot opt for the UPS after September 30.
This initiative aims to provide Central government employees with an informed choice in planning their post-retirement financial security.
The Central Civil Services (Implementation of UPS under NPS) Rules, 2025 — notified on September 2 — cover a wide range of issues.
For employees joining the UPS, the rules spell out how they can enrol and exercise their option in a clear manner. Importantly, those who change their mind later are not locked in forever — they can switch back to the NPS, one year before retirement or three months before opting for voluntary retirement.
The rules also define how contributions will work under UPS, both from the employee and the government, so that deductions and matching deposits remain transparent. In case there is any delay by the authorities in registering someone under UPS or crediting their contribution on time, the employee will be compensated, ensuring they don’t lose out because of administrative lapses
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