**Policy Summary: Onetime UPS to NPS Switch Facility for Central Government Employees**
This policy, effective as of September 4, 2025, introduces a one-time, one-way switch facility allowing eligible Central Government employees under the Unified Pension Scheme (UPS) to revert to the National Pension System (NPS). This initiative, as detailed in the Ministry of Finance Notification No. F. No. FX132024PR dated January 24, 2025, and Department of Financial Services Office Memorandum No. 132024PR dated August 25, 2025, aims to provide employees with greater flexibility in post-retirement financial planning.
Key provisions of the switch facility are as follows:
* **One-Time Switch:** Eligible employees can switch from UPS to NPS only once, with no option to revert to UPS afterward.
* **Timing Restrictions:** The switch must be exercised at least one year before superannuation or three months before voluntary retirement, whichever is applicable.
* **Exclusions:** The switch facility is not available in cases of removal, dismissal, compulsory retirement as a penalty, or when disciplinary proceedings are ongoing or contemplated.
* **Default Enrollment:** Employees who do not opt for the switch by September 30, 2025, will remain under UPS by default.
* **Irreversible Decision:** Employees who choose to remain in UPS cannot opt for NPS after September 30, 2025.
The deadline for eligible employees to opt for the UPS is September 30, 2025. This policy seeks to empower Central Government employees with informed choices regarding their retirement savings. NBAD Release ID: 2163760.
Key Entities Referenced
Unified Pension Scheme: A pension scheme (UPS) for eligible Central Government employees, notified by the Ministry of Finance.
National Pension System: A pension system (NPS) to which Central Government employees under UPS can switch under specific conditions.
Ministry of Finance: The government ministry that notified the Unified Pension Scheme and introduced the switch facility.
Department of Financial Services: The department that issued the Office Memorandum introducing the switch facility.
Central Government Employees: The employees eligible for the Unified Pension Scheme and the switch facility to the National Pension System.
Delhi: Place of publication of Press Information Bureau (PIB) release
30th September 2025: The last date for eligible employees and past retirees under NPS to opt for UPS
Ministry of Finance
One-time, One-way Switch facility from UPS to NPS
made available to the Central Government
Employees under specific conditions
30th September 2025 to be the last date to opt for
UPS
Posted On: 04 SEP 2025 5:27PM by PIB Delhi
The Unified Pension Scheme (UPS) for eligible Central Government employees was notified by the Ministry
of Finance, Government of India, vide Notification No. F. No. FX-1/3/2024-PR dated 24.01.2025.
The Department of Financial Services has issued an Office Memorandum No. 1/3/2024-PR dated 25.08.2025,
introducing a one-time, one-way switch facility for Central Government employees who have opted for the
Unified Pension Scheme (UPS) to revert to the National Pension System (NPS), under specified conditions.
i. Eligible employees under UPS can switch to NPS only once, and cannot switch back to UPS.
ii. The switch must be exercised at least one year before superannuation or three months before
voluntary retirement, whichever is applicable.
iii. The switch facility will not be allowed in case of removal, dismissal or compulsory retirement
as a penalty or for cases where disciplinary proceedings are ongoing or contemplated.
iv. Those who do not opt for the switch within the stipulated time will continue under UPS by
default.
v. Employees who choose to remain in NPS cannot opt for UPS after 30th September 2025.
This initiative aims to provide informed choice to Central Government employees in planning their post-
retirement financial security. By opting for UPS the employees retain their choice for swich to NPS at a later
date.
Note: The last date for eligible employees and past retirees under NPS to opt for UPS is September 30,
2025.
***
NB/AD
(Release ID: 2163760)