The government has introduced a one-time, one-way switch facility for central government employees, , reported The Economic Times.
According to a notification issued by the Ministry of Finance on Monday, employees can opt for the UPS until 30 September 2025.
The switch option, however, can be exercised only once and must be done at least one year before superannuation or three months before voluntary retirement, whichever is earlier.
The notification clarified that similar rules would apply in cases of resignation, with minor modifications if required.
However, the switch facility will not be available in cases of dismissal, compulsory retirement as a penalty, or where disciplinary proceedings are pending or being considered.
Once the switch is made, the provisions of the PFRDA (Exit & Withdrawal under NPS) Regulations, 2015 will come into effect. This means the employee will no longer be eligible for assured payouts and benefits under the UPS.
The government also said that its differential contribution of 4%, based on the default investment pattern, will be calculated and added to the employee’s NPS corpus at the time of exit.
The move gives employees a choice but also makes it clear that the switch is final. Once an employee opts for the NPS, they cannot return to the UPS.