Over 1.18 lakh government employees opted for Unified Pension Scheme as of July 2026: Finance Ministry
New Delhi, August 3
Over 1.18 lakh Central Government workers chose the Unified Pension Scheme as of mid-July 2026, the government informed Parliament. The total number of subscribers, including new recruits, existing staff, and former retirees who opted for the scheme, stood at 1,18,195 as on July 19, 2026.
The Ministry of Finance, in a written reply submitted by Union Minister Nirmala Sitharaman in Lok Sabha, outlined the enrolment figures, policy updates, and administrative provisions made since the rollout of the pension framework.
"Unified Pension Scheme (UPS), notified on 24.01.2025, has been introduced as an option under National Pension System (NPS) with the objective of providing assured monthly payout after retirement to the Central Government employees covered under the NPS," the reply stated.
"UPS was also available to past retirees who superannuated or retired on or before 31.03.2025 under NPS and had completed 10 years of regular service, as well as to the legally wedded spouse of such eligible deceased retirees," the Minister added.
The framework became operational on April 1, 2025, and the government initially set a deadline for employees to choose the migration path. "The UPS has been envisaged to address the demand of the employees covered under NPS regarding assured pension after retirement while ensuring fiscally responsible funded and contributory pension scheme," the reply stated.
"UPS became effective from 01.04.2025 and the last date for exercising the option to migrate to UPS was 30.11.2025," the Ministry noted.
The government modified certain rules following feedback from workers. "Based on the representations from employees and associations, the cut-off date to opt for UPS was extended upto 30.11.2025," the response detailed.
"The Government extended the benefit of 'Retirement gratuity and Death gratuity' under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021, to the Central Government employees covered by UPS," the Ministry said.
"Further, the Government employees who opted for UPS under NPS shall also be eligible for option for availing benefits under the CCS (Pension) Rules, 2021, or the CSS (Extraordinary Pension) Rules, 2023, in the event of death of the Government servant during service or his discharge on the ground of invalidation or disablement," the reply added.
The Ministry clarified that tax parity was maintained across the options. "The Government also extended tax benefits to UPS as available to NPS," the reply noted.
"Additionally, the Government allowed the Central Government employees, who opted for UPS, one-time one-way switch facility to revert to NPS," the response said.
Addressing inquiries regarding performance audits or prospective framework changes, the Ministry confirmed no review was conducted yet and no alteration was under consideration. "As the scheme has been rolled out w.e.f. 01.04.2025, Government has not reviewed the implementation and performance of the UPS as on date," the reply added. "As on date, there is no proposal under consideration to make any changes or replace the UPS."
— ANI
Reader Comments
It's good that the government extended the deadline and allowed a one-time switch back to NPS. At least employees have the freedom to choose what works best for them. But I wonder if private sector employees will ever get such benefits. 🤔
This is a classic Indian bureaucratic move - introduce a scheme, extend the deadline, and then say no review is planned. But honestly, the assured pension is a game-changer for middle-class families who depend on this income post-retirement. Good step, but let's see how fiscally sustainable it is in the long run.
Interesting to see how India is balancing pension security with fiscal responsibility. The UPS seems like a thoughtful middle ground between the old pension scheme and NPS. I hope the government monitors its implementation closely, as promised.
The fact that past retirees and even spouses of deceased retirees can opt for UPS shows some thoughtfulness. But why no review yet? It's been over a year. The government should be more proactive in assessing if this scheme is actually helping the people it's meant for.
As someone whose father is a retired government employee, I know how important assured pension is. The old pension scheme gave that security, and NPS took it away. UPS is a good compromise, but I hope the returns are as good as promised. Time will tell. 🙏
M We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.