Unified Pension Scheme Opted by Over 1.18 Lakh Employees

The Unified Pension Scheme (UPS) is an option under the National Pension System (NPS) for Central Government employees. By mid-July 2026, over 1.18 lakh Central Government workers, including new recruits, existing staff, and former retirees, had opted for the scheme.

Unified Pension Scheme: Legal and Administrative Framework

The UPS was notified on January 24, 2025, and became effective from April 1, 2025. The scheme was introduced as a pension option within the NPS framework for Central Government employees. The initial deadline for choosing UPS was June 30, 2025, and it was later extended to November 30, 2025. The extension followed feedback from employees and associations.

Eligibility and Pension Entitlements

The UPS provides an assured monthly payout after retirement. For a minimum qualifying service of 25 years, the scheme assures a pension equal to 50% of the average basic pay drawn during the last 12 months before superannuation. The scheme also provides a minimum pension of at least ₹10,000 per month for employees with a minimum of 10 years of service upon superannuation. The design combines assured benefits with a funded and contributory pension structure.

Switch Facility and Parliamentary Update

Central Government employees who opted for UPS can use a one-time, one-way switch facility to return to NPS during service, subject to specified conditions. Union Minister Nirmala Sitharaman placed the enrolment figures before the Lok Sabha in a written reply on August 3, 2026.

Important Facts for Exams

• The National Pension System was introduced for Central Government employees in 2004 and later expanded to other categories.
• The Unified Pension Scheme is an option within the National Pension System and not a separate standalone pension system.
• Superannuation is the age of retirement fixed by service rules, and pension calculations often use the last drawn salary or average salary.
• A one-way switch facility means the employee can move in one direction only, from UPS back to NPS, under prescribed rules.

Current Enrolment Status

As of mid-July 2026, the number of UPS optants stood at 1,18,195. Earlier figures for November 30, 2025, had placed the number of optants at over 1.22 lakh Central Government employees.