The Pension Fund Regulatory and Development Authority (PFRDA) has announced the operationalisation of the Unified Pension Scheme (UPS) under the National Pension System (NPS), effective from April 1, 2025. Central government employees have until June 30, 2025 to choose to enroll in the scheme.
Who Is Eligible for the Unified Pension Scheme?
Three categories of central government employees are eligible to enroll in the UPS:
- Existing Employees: Employees covered under NPS as of April 1, 2025.
- New Recruits: Employees joining central government services on or after April 1, 2025.
- Retired Employees: Employees previously under NPS who retired before March 31, 2025, including those who opted for voluntary retirement. If a subscriber passed away before choosing UPS, their legally wedded spouse can apply.
Contribution and Government Support
Under UPS, employees will contribute 10% of their basic pay and dearness allowance (DA) to their pension accounts. The central government will match this with an equal contribution, further adding an additional 8.5% contribution of the combined basic pay and DA.
This enhanced support aims to ensure long-term financial security for retirees.
Guaranteed Pension Benefits
A key feature of the UPS is the assurance of a minimum guaranteed monthly pension of Rs 10,000. To qualify, employees need to complete a minimum of 10 years of qualifying service.
How to Apply
Eligible employees can access and submit their applications online via the Protean CRA website at https://npscra.nsdl.co.in starting April 1, 2025. Physical submissions will also be accepted.
Once the decision to enroll in the UPS is made, it is final and irreversible.
Final Thoughts
The Unified Pension Scheme offers a secure retirement option with assured benefits. Central government employees are encouraged to carefully evaluate their choices before the June 30, 2025 deadline. For further information, employees can visit the official NPS website or contact their respective HR departments.
