**Summary:**
On July 28, 2025, the Ministry of Finance addressed Lok Sabha Starred Question No. 111 regarding benefits under the Unified Pension Scheme (UPS). As of that date, 25,756 retired Central Government subscribers were eligible for additional benefits under UPS, specifically those who superannuated, deceased, or retired under Fundamental Rules 56j on or before March 31, 2025, with ten or more years of qualifying service and were covered under the National Pension System (NPS).
Out of 7,253 claims received, 4,978 have been processed for payment. Currently, there are no plans to extend UPS benefits to other pension schemes or sectors, as UPS is designed as an option within the NPS for Central Government employees.
The government has taken steps to make UPS more employee-friendly. The deadline to opt for UPS was extended by three months to September 30, 2025, based on employee feedback. Furthermore, the benefit of 'Retirement gratuity and Death gratuity' under the provisions of the Central Civil Service (CCS) Payment of Gratuity under National Pension System Rules, 2021 has been extended to Central Government employees covered by UPS. UPS subscribers under NPS are also eligible to opt for benefits under CCS Pension Rules, 2021, or CCS Extraordinary Pension Rules, 2023, in the event of death during service or discharge due to invalidation or disablement. Tax benefits equivalent to those available under NPS, as per the Income Tax Act, 1961, have also been extended to UPS.
Key Entities Referenced
Unified Pension Scheme: A pension scheme introduced by the Government of India to provide benefits to retired Central Government subscribers.
Shri Kanwar Singh Tanwar: Member of Parliament who raised a question in Lok Sabha regarding the Unified Pension Scheme.
Dr. Sanjay Jaiswal: Member of Parliament who raised a question in Lok Sabha regarding the Unified Pension Scheme.
Ministry of Finance: The ministry responsible for financial matters in the Government of India.
Department of Financial Services: A department under the Ministry of Finance, Government of India.
Smt. Nirmala Sitharaman: The Minister of Finance who answered the questions related to the Unified Pension Scheme in the Lok Sabha.
National Pension System: A pension scheme under which the Unified Pension Scheme has been introduced as an option for Central Government employees.
Income Tax Act, 1961: The legislation governing income tax in India, under which tax benefits are extended to UPS.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
*****
LOK SABHA
STARRED QUESTION NO. †*111
ANSWERED ON MONDAY, 28 JULY, 2025/ SRAVANA 6, 1947 (SAKA)
BENEFITS UNDER UNIFIED PENSION SCHEME
†*111. Shri Kanwar Singh Tanwar
Dr. Sanjay Jaiswal
Will the Minister of FINANCE be pleased to state:
(a) the total number of retired Central Government subscribers eligible to receive additional benefits
under the Unified Pension Scheme;
(b) the number of claims received and processed so far since the introduction of the scheme;
(c) whether the Government proposes to extend such benefits to other pension schemes or sectors
in the near future and if so, the details thereof;
(d) whether the Government is contemplating to amend the UPS to make it more employees'
friendly; and
(e) if so, the details thereof?
ANSWER
The Minister of Finance
(Smt. Nirmala Sitharaman)
(a) to (e) A Statement is laid on the Table of the House.
*******STATEMENT OF LOK SABHA STARRED QUESTION NO. †*111 REGARDING
“BENEFITS UNDER UNIFIED PENSION SCHEME” RAISED BY SHRI KANWAR SINGH
TANWAR, AND DR. SANJAY JAISWAL, ANSWERED ON 28.07.2025.
(a) As per eligibility criteria, there are 25,756 retired Central Government subscribers eligible to
receive additional benefits under UPS. These eligible subscribers are those Central Government
employees who have either superannuated or deceased or retired under Fundamental Rules 56(j), on
or before 31st March 2025, after completing ten years or more of qualifying service and were covered
under National Pension System (NPS).
(b) As on 20th July, 2025, 7,253 claims have been received and out of which 4,978 claims have been
processed for payment of benefits under UPS.
(c) UPS has been introduced as an option under National Pension System (NPS) for the employees
of Central Government who are covered under the NPS. There is no proposal under consideration to
extend such benefits to other pension schemes or sectors.
(d) & (e) Based on the representations from employees and associations, the cut-off date to opt for
UPS was extended for a period of three months upto 30th September, 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. Further, the Government employees who opt for UPS under
NPS shall also be eligible for option for availing 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.
**********