Unified Pension Scheme (UPS) Key Highlights from Lok Sabha Reply
Unified Pension Scheme (UPS): Key Highlights from Lok Sabha Reply
The Government of India has provided detailed information in the Lok Sabha regarding the Unified Pension Scheme (UPS) through Unstarred Question No. 2389, answered on 15 December 2025 by the Minister of State for Finance, Shri Pankaj Chaudhary. The reply clarifies important aspects related to employee coverage, switching options, timelines, assured payouts, and family benefits under UPS.
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Overview of Unified Pension Scheme
The Unified Pension Scheme (UPS) has been introduced as an assured pension framework within the National Pension System (NPS) architecture for Central Government employees. The scheme aims to provide financial security through guaranteed payouts while retaining regulated investment mechanisms.
Key Points from the Government’s Reply
1. Number of Employees Opting for UPS
As on 30 November 2025, a total of 1,22,123 employees, including:
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New recruits
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Existing employees
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Past retirees
have opted for the Unified Pension Scheme (UPS) instead of continuing solely under NPS.
2. One-Time, One-Way Switch Facility (UPS to NPS)
The Government has allowed a one-time, one-way option for Central Government employees who opted for UPS to revert back to NPS during their service, subject to specific conditions:
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Superannuation:Option must be exercised not later than 12 months before the date of retirement.
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Voluntary Retirement:Option must be exercised not later than 3 months before the deemed date of voluntary retirement.
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Resignation or Compulsory Retirement under FR 56(j) (non-penal):Option can be exercised at the time of resignation or retirement.
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Removal or dismissal
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Compulsory retirement as a penalty
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Employees facing ongoing or contemplated disciplinary proceedings
3. Extension of Timeline to Opt for UPS
UPS became effective from 01 April 2025. The Government extended the option window multiple times to ensure wider participation:
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Initially up to 30 June 2025
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First extension up to 30 September 2025
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Final extension up to 30 November 2025
4. Assured Payout under CCS Rules, 2025
The Government has notified the Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System) Rules, 2025.
Key provisions include:
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Minimum qualifying service: 10 years
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Full assured payout:
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50% of average basic pay (drawn during the last 12 months before superannuation)
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Applicable after 25 years of qualifying service
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Proportionate payout:For service less than 25 years but not below 10 years
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Assured minimum pension:₹10,000 per month after completion of at least 10 years of service
5. Family Payout and Children’s Entitlement
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Family payout rate:60% of the admissible payout, payable to the legally wedded spouse of the deceased pensioner.
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Children’s entitlement:Children are not entitled to receive the 60% assured family payout under UPS in the absence of a surviving spouse.
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Alternative benefits, if any, are governed as per applicable NPS/UPS provisions and extant government rules.
Conclusion
The Unified Pension Scheme represents a significant reform in India’s pension framework by combining assured pension benefits with the structured investment approach of NPS. With extended timelines, a one-time switch facility, guaranteed minimum payouts, and clearly defined family benefits, UPS provides enhanced clarity and security to Central Government employees while maintaining fiscal discipline.
The Lok Sabha reply underscores the Government’s commitment to ensuring a transparent, predictable, and employee-friendly pension system.
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