New Delhi: The central government on Thursday announced that it has formalised the rules governing service-related matters under the Unified Pension Scheme (UPS) for its employees.
According to the Ministry of Personnel, Public Grievances and Pensions, the Department of Pension and Pensioners’ Welfare has issued a notification in the official Gazette on the Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System) Rules, 2025. These rules provide a comprehensive framework for managing benefits under the UPS for employees who choose this option within the National Pension System (NPS).
The new rules cover a wide range of provisions, including:
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Enrolment procedures for the Unified Pension Scheme.
A facility to switch from UPS back to NPS either one year before retirement or up to three months prior to voluntary retirement.
Contribution norms for both employees and the government.
Compensation arrangements for employees if there is any delay in registration or crediting contributions to their NPS accounts.
Options for claiming benefits under either the CCS (Pension) Rules or UPS regulations in case of death or disability during service.
Eligibility for retirement benefits on superannuation, premature retirement, voluntary retirement, absorption in autonomous bodies/PSUs, medical invalidation, or resignation.
The impact of compulsory retirement, dismissal, or removal from service.
Guidelines for situations where departmental or judicial proceedings are pending at the time of retirement.
Welcoming the development, All India NPS Employees Federation president Manjeet Singh Patel said the move to allow retirement benefits after 20 years of regular service—replacing the earlier requirement of 25 years—marks a “historic milestone” in employee welfare. He added that this was a long-awaited improvement since the introduction of the scheme.
What is UPS?
The Unified Pension Scheme (UPS) is a retirement benefit option introduced under the National Pension System for central government employees. Its key objective is to ensure assured, inflation-linked, and sustainable retirement income, thereby addressing concerns about pension adequacy, predictability, and longevity risks.
UPS functions within the existing NPS framework and is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It applies to eligible serving and retired employees under specified conditions.
The scheme was approved by the Centre on August 24, 2025, and has been applicable with effect from April 1, 2025.
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