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Key Points

Finance Minister Nirmala Sitharaman informed Parliament that 4,978 out of 7,253 UPS claims have been processed. The scheme covers Central government retirees under NPS with extended tax benefits. The deadline to opt for UPS has been extended to September 2025. The scheme also provides gratuity benefits aligned with CCS rules.

Key Points: Nirmala Sitharaman Says 4,978 UPS Pension Claims Processed So Far

  • 25,756 retired Central govt employees eligible for UPS benefits
  • UPS offers tax parity with NPS under Income Tax Act
  • Deadline extended to Sept 2025 for opting into UPS
  • Gratuity benefits extended under CCS rules for UPS subscribers
2 min read

Unified Pension Scheme: 7,253 claims received, 4,978 processed, says Centre

Finance Minister Nirmala Sitharaman reveals 7,253 UPS claims received, with 4,978 processed for Central govt retirees under NPS.

"These eligible subscribers are those Central government employees who have either superannuated or deceased or retired under Fundamental Rules 56 (j) - Nirmala Sitharaman"

New Delhi, July 28

Finance Minister Nirmala Sitharaman on Monday said that 7,253 claims under the Unified Pension Scheme (UPS) have been received, out of which 4,978 claims have been processed for payment of benefits (as on July 20).

As per the eligibility criteria, there are 25,756 retired Central government subscribers eligible to receive additional benefits under UPS, the minister informed the Parliament.

"These eligible subscribers are those Central government employees who have either superannuated or deceased or retired under Fundamental Rules 56 (j), on or before March 31, 2025, after completing 10 years or more of qualifying service and were covered under National Pension System (NPS)," she said in a written reply in the Lok Sabha.

UPS has been introduced as an option under NPS for the employees of the Central government who are covered under the NPS.

There is no proposal under consideration to extend such benefits to other pension schemes or sectors, according to the minister.

Based on the representations from employees and associations, the cut-off date to opt for UPS was extended for a period of three months up to September 30, 2025.

The government has 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 minister informed that the government employees who opt for UPS under NPS shall also be eligible for the option to avail benefits under the CCS (Pension) Rules, 2021 or the CCS (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 government has also extended tax benefits to UPS as are available to NPS under the Income Tax Act, 1961," she mentioned in her reply.

Earlier this month, the Finance Ministry announced that the tax benefits available under the NPS will apply "mutatis mutandis" to the UPS, as it is an option under the former. The measure aims to provide further impetus to the UPS. These provisions ensure parity with the existing NPS structure and provide substantial tax relief and incentives to employees opting for the UPS.

- IANS

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Reader Comments

P
Priya S
Processing nearly 5000 claims is commendable, but what about the remaining 2000+? My father's application is still pending. The system needs to be more transparent about timelines. #PensionReforms
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Arjun K
The tax benefits are a welcome move! This will encourage more employees to opt for UPS. However, the government should conduct awareness campaigns in regional languages to help people understand the scheme better.
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Sarah B
As someone working in the pension sector, I appreciate the structured approach. The extension of gratuity benefits shows the government is listening to employee concerns. But implementation at ground level needs monitoring.
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Vikram M
Why the cutoff date of March 2025? Many employees retiring after this date will miss out. The government should make this scheme permanent rather than time-bound. Pension is a lifelong requirement after all!
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Kavya N
The death and disability provisions are much needed. Many families suffer financial crises when the sole earner passes away. Hope the processing for such cases is given priority. 🙏
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Michael C
While the numbers look good on paper, I wonder about the actual disbursement timelines. In my experience, Indian pension systems often get stuck in bureaucratic

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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