New Delhi: The Central government on Thursday announced that it has notified the rules governing service matters and benefits under the Unified Pension Scheme (UPS) for its employees.
In a statement, the Ministry of Personnel, Public Grievances and Pensions said the Department of Pension and Pensioners’ Welfare has published in the Official Gazette the Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System) Rules, 2025. These rules will regulate service-related benefits for Central government employees who opt for UPS under the National Pension System (NPS).
Key Features of the Rules
- Enrolment under UPS.
- Switch option from UPS to NPS – available one year before retirement or three months before voluntary retirement (VRS).
- Employee and Government contributions.
- Compensation to employees for delays in registration or credit of contributions to the NPS account.
- Choice of benefits under CCS (Pension) Rules or UPS in case of death or disability during service.
- Benefits on various types of retirement – superannuation, premature or voluntary retirement, absorption in autonomous bodies/PSUs, retirement on invalidation, and resignation.
- Effect of disciplinary action such as compulsory retirement, dismissal, or removal.
- Impact of pending departmental/judicial proceedings at the time of retirement.
Welcoming the notification, All India NPS Employees Federation president Manjeet Singh Patel said the change allowing retirement after 20 years of regular service instead of 25 years was a “historic milestone” for employee welfare.
“This was a much-needed amendment in the UPS since the scheme’s operationalisation,” he added.
What is the Unified Pension Scheme (UPS)?
The UPS is an optional pension framework under the National Pension System (NPS) for Central government employees. It provides assured, inflation-linked, and predictable retirement benefits, addressing concerns over pension adequacy and longevity protection.
The scheme operates within the existing NPS structure regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and applies to both serving and retired employees under certain conditions.
The Centre had approved UPS on August 24, and it became effective from April 1, 2025.