The Government of India has announced a one-time, one-way switch facility for Central Government employees who had opted for the Unified Pension Scheme (UPS). They can now choose to move back to the National Pension System (NPS) under specific conditions.
This option has been provided through an Office Memorandum issued by the Department of Financial Services on 25 August 2025, following the UPS notification earlier this year.
Key Conditions for the Switch
- One-time facility – Eligible employees under UPS can switch to NPS only once. After switching, they cannot revert to UPS.
- Time of switch – Must be exercised at least 1 year before superannuation or 3 months before voluntary retirement, whichever comes first.
- Not available in disciplinary cases – Employees facing removal, dismissal, compulsory retirement, or disciplinary proceedings (ongoing/contemplated) cannot use this facility.
- Default option – If employees do not exercise the switch, they will continue under UPS.
- Final deadline – Employees who remain in NPS cannot move to UPS after 30 September 2025.
Why it matters
- Provides flexibility for employees to make informed choices about retirement planning.
- Ensures financial security by allowing those in UPS the chance to move to NPS, which is market-linked and offers different benefits.
- Reinforces the government’s approach of giving employees greater autonomy over their pension decisions.
Important Date
30 September 2025 – Last date for NPS subscribers to opt for UPS.
After this, the choice becomes final and irreversible.
Author
FAQs
What is the UPS to NPS switch facility?
It is a one-time, one-way option for Central Government employees who earlier chose the Unified Pension Scheme (UPS) to move back to the National Pension System (NPS). This facility allows employees to re-evaluate their retirement planning and opt for NPS if they prefer its structure and benefits.
Can employees switch back to UPS after moving to NPS?
No. Once an employee opts to move from UPS to NPS, the decision is final. They cannot switch back to UPS at any stage, making it important to carefully consider the choice before applying.
What is the deadline for opting for UPS or switching to NPS?
The deadline is 30 September 2025. Employees who do not make a choice by then will remain in UPS by default, and new entries into UPS will not be allowed after this date.
Who is not eligible for the switch?
Employees facing disciplinary proceedings, removal, dismissal, or compulsory retirement as a penalty are not allowed to use this switch facility. The option is only for employees in good service standing.
What happens if an employee does not exercise the switch option?
If no option is exercised, the employee will automatically continue under UPS. This means they will lose the chance to move to NPS permanently after the deadline.
