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The Ministry of Finance has set September 30, 2025, as the last date for eligible central government employees and past retirees under the National Pension System (NPS) to opt for the Unified Pension Scheme (UPS). Employees remaining in NPS after this date won't be able to switch to UPS.
"The Unified Pension Scheme (UPS) for eligible Central Government employees vide Notification No. F. No. FX-1/3/2024-PR dated 24.01.2025. The Department of Financial Services (DFS) underlines that the last date for eligible employees and past retirees under NPS to opt for UPS is September 30, 2025," the Ministry of Finance press release said. The Department of Financial Services (DFS) has advised all eligible employees to make their choice well before the cut-off date to avoid last-minute issues and ensure smooth processing of their applications. Officials made it clear that those who continue with NPS after September 30, 2025, will not be able to switch to UPS later. Along with this, DFS issued an Office Memorandum on August 25, 2025, providing a one-time, one-way switch facility. This allows Central Government employees who have already joined UPS to revert to NPS under certain conditions. As per the memorandum, employees can switch from UPS to NPS only once. Once exercised, they cannot opt for UPS again. The option must be used at least one year before the retirement age or three months before voluntary retirement, whichever is earlier. The switch will not be available in cases where employees face removal, dismissal, or compulsory retirement as a penalty. It will also not apply where disciplinary proceedings are pending or expected. If the switch is not used within the given time, employees will continue under UPS by default. The Ministry stated that the move is intended to provide employees with an informed choice in securing their post-retirement finances. Those who shift to UPS will still retain the option to return to NPS later, provided they meet the required conditions. (ANI)
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