Unified Pension Scheme (UPS) option to migrate from NPS

Unified Pension Scheme (UPS) option to migrate from NPS

01-04-2025

Starting Tuesday (1st April,2025), National Pension Scheme (NPS) subscribers have the option to switch to the newly launched Unified Pension Scheme (UPS). This move aims to offer a guaranteed pension, government contributions, and more investment flexibility to central government employees post-retirement.

To make the switch, employees can visit the UPS migration page and select UPS under the NPS options.

Eligible employees can enroll through the Protean CRA portal (npscra.nsdl.co.in).

Physical forms are also available for submission.

About UPS

UPS promises a structured pension payout based on an employee’s service tenure. Those with 25 or more years of service will receive 50% of their average last 12 months’ basic salary as a pension.

Employees with 10-25 years of service will get a proportionate pension, ensuring that longer service results in higher payouts.

For those who complete at least 10 years of qualifying service, a minimum guaranteed pension of ₹10,000 per month is assured.

Under UPS, employees contribute 10% of their basic salary plus dearness allowance (DA), with the government matching that contribution. This means a total of 20% of the salary is invested.

While the default schemes prescribed by the government will manage these contributions, employees can also opt to invest with private pension fund managers (PFMs).

The UPS also provides continued financial support for the spouse of a pensioner. If the pensioner passes away, the spouse will receive 60% of the pension amount, ensuring financial stability for retirees’ families.

Pension withdrawals

When employees retire, their pension will be drawn from their accumulated corpus, similar to a systematic withdrawal plan (SWP) in mutual funds. If the corpus depletes before the pensioner or their spouse passes away, payments will continue from a government-managed common poo;.

Currently, UPS is available only to central government employees. State governments will decide individually whether to adopt the scheme for their employees