UPS vs NPS: Deadline and One-Time Switch Rules Announced

byPaytm Editorial TeamSeptember 19, 2025

Key Takeaways

Source: PIB

The Department of Financial Services (DFS), Ministry of Finance, has announced that 30th September 2025 will be the final date for eligible Central Government employees and past retirees under the National Pension System (NPS) to opt for the Unified Pension Scheme (UPS).

The UPS was earlier notified by the Ministry of Finance through Notification No. F. No. FX-1/3/2024-PR dated 24.01.2025. Employees are advised to exercise their option well before the deadline to avoid last-minute complications. After this date, those who remain in NPS will not be able to switch to UPS.

In addition, DFS has issued Office Memorandum No. 1/3/2024-PR dated 25.08.2025, allowing a one-time, one-way switch from UPS back to NPS under specific conditions.

Key Conditions for Switching from UPS to NPS

  1. Employees can exercise the switch only once, and once moved to NPS, they cannot return to UPS.
  2. The option to switch must be used at least one year before superannuation or three months before voluntary retirement, whichever comes earlier.
  3. The switch will not be permitted in cases of removal, dismissal, compulsory retirement as a penalty, or if disciplinary proceedings are ongoing or under consideration.
  4. Employees who do not exercise the option within the stipulated period will remain under UPS by default.
  5. Employees who continue under NPS beyond 30th September 2025 will lose the option to join UPS permanently.

This initiative aims to give Central Government employees a fair choice in planning their post-retirement financial security. By opting for UPS, employees will also have the flexibility of switching back to NPS once, under the prescribed rules.

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

FAQs

What is the last date to opt for the Unified Pension Scheme (UPS)?

The final date to switch from NPS to UPS is 30th September 2025.

Can employees switch back to NPS after opting for UPS?

Yes, a one-time, one-way switch to NPS is allowed under specific conditions.

What are the conditions for switching from UPS to NPS?

The switch must be made one year before superannuation or three months before voluntary retirement, whichever is earlier. It is not permitted in cases of dismissal, compulsory retirement, or ongoing disciplinary action.

Can employees switch back to UPS after moving to NPS?

No. Once an employee switches from UPS to NPS, they cannot revert to UPS again.

What happens if an employee doesn’t opt for UPS by the deadline?

Employees who stay with NPS beyond 30th September 2025 will not be able to move to UPS later. Similarly, employees in UPS who do not exercise the one-time switch option will remain in UPS by default.
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