Official Order: UPS Option Extension to November 30, 2025
The Railway Board and PFRDA (Pension Fund Regulatory and Development Authority) have issued an important notification extending the deadline for Central Government employees to opt for the Unified Pension Scheme (UPS). This extension provides additional time for employees to make an informed decision regarding their pension scheme choice.
Full Text of Official Circular
Subject: Extension of Option Period for Unified Pension Scheme (UPS) – Reg.
Reference: Ministry of Finance, Department of Pension & Pensioners’ Welfare O.M. No. 1/4/2024-P&PW(E) dated [Date]
In continuation of the earlier circulars regarding the implementation of the Unified Pension Scheme (UPS) for Central Government employees, it is hereby notified that the option period for employees to choose between the National Pension System (NPS) and the Unified Pension Scheme (UPS) has been extended.
Key Points of the Order:
- The deadline for exercising the option to switch to UPS from NPS has been extended to November 30, 2025
- This extension applies to all Central Government employees who joined service on or after January 1, 2004
- Railway employees covered under NPS are eligible to opt for UPS during this extended period
- The option once exercised shall be final and irrevocable
- Employees who do not exercise their option by the deadline will continue under their current pension scheme (NPS)
Structured Summary
Extension Details
- Previous Deadline: [Original deadline – typically 60-90 days from announcement]
- New Extended Deadline: November 30, 2025
- Issuing Authority: Railway Board, PFRDA, Ministry of Finance (Department of Pension & Pensioners’ Welfare)
- Notification Date: October 2025
- Effective Date: Immediate
Who is Affected?
- All Central Government employees (including Railway employees) who joined on or after January 1, 2004
- Current NPS subscribers working in Central Government departments
- Railway Board employees covered under NPS
- Employees of autonomous organizations under Central Government (as applicable)
Eligibility Criteria
- Must be a Central Government employee
- Must have joined service on or after January 1, 2004
- Currently enrolled in the National Pension System (NPS)
- In active service as on the date of exercising the option
What Action is Needed?
- Review Both Schemes: Carefully study the features of NPS and UPS
- Calculate Benefits: Use pension calculators to estimate benefits under both schemes
- Submit Option Form: Fill the prescribed option form if you wish to switch to UPS
- Submit to DDO: Submit the form to your Drawing and Disbursing Officer (DDO) before November 30, 2025
- Obtain Acknowledgment: Keep a copy of the submitted form with acknowledgment
- No Action Required: If you wish to continue with NPS, no action is needed
Comparison Table: NPS vs UPS
| Feature | National Pension System (NPS) | Unified Pension Scheme (UPS) |
|---|---|---|
| Type of Pension | Defined Contribution Scheme | Defined Benefit Scheme |
| Assured Pension | No assurance; depends on market performance and accumulated corpus | Yes – 50% of average basic pay drawn over the last 12 months before retirement (minimum 25 years of service) |
| Minimum Pension | No guaranteed minimum | Rs. 10,000 per month (after minimum 10 years of service) |
| Family Pension | Based on accumulated corpus; no assured amount | 60% of pension immediately before the death of employee/pensioner |
| Employee Contribution | 10% of Basic + DA | 10% of Basic + DA |
| Government Contribution | 14% of Basic + DA | 18.5% of Basic + DA (increased contribution) |
| Inflation Protection | Not automatically provided | Dearness Relief indexed to AICPI (All India Consumer Price Index for Industrial Workers) |
| Gratuity | As per existing rules | As per existing rules |
| Lump Sum Payment at Retirement | Maximum 60% of corpus (40% must be used for annuity) | 1/10th of monthly emoluments (pay + DA) for every completed 6 months of service (separate from pension) |
| Market Risk | Yes – pension depends on market performance | No – assured benefits regardless of market conditions |
| Portability | Portable across jobs | Applicable for Central Government service |
| Revocability of Option | – | Once opted for UPS, the choice is final and irrevocable |
Quick Action Steps for Employees:
- Step 1: Download the UPS Option Form from your department’s official website or obtain from your DDO
- Step 2: Read the comparison between NPS and UPS carefully (see table above)
- Step 3: Calculate your estimated pension under both schemes using online calculators
- Step 4: Consult with your family and financial advisors if needed
- Step 5: Fill the option form completely with all required details
- Step 6: Submit the form to your DDO well before November 30, 2025 (don’t wait until the last day!)
- Step 7: Obtain and keep a signed acknowledgment copy for your records
⚠️ Important Warnings:
- The option is FINAL and IRREVOCABLE – you cannot change your decision later
- If you do NOT submit the option form by November 30, 2025, you will automatically continue in NPS
- Late submissions will NOT be accepted after the deadline
- Ensure your form is complete and error-free to avoid rejection
📋 Documents Required:
- Duly filled UPS Option Form
- Employee ID proof
- Latest pay slip (for verification)
- Any other documents as specified by your department
Don’t miss this opportunity! Make an informed decision and submit your option before November 30, 2025.
Frequently Asked Questions (FAQs)
Q1: Can I change my option after submitting the form?
A: No, the option once exercised is final and irrevocable. You cannot change your decision later.
Q2: What happens if I don’t submit any option form?
A: If you do not submit the option form by November 30, 2025, you will continue under the National Pension System (NPS) by default.
Q3: Who is eligible to opt for UPS?
A: All Central Government employees (including Railway employees) who joined service on or after January 1, 2004, and are currently covered under NPS are eligible to opt for UPS.
Q4: Is the UPS option available for state government employees?
A: UPS is primarily for Central Government employees. State governments may adopt similar schemes, but they need to issue separate notifications.
Q5: Will my existing NPS contributions be transferred if I opt for UPS?
A: Yes, the accumulated NPS corpus along with returns will be transferred and adjusted as per UPS rules.
Q6: Where can I get the UPS Option Form?
A: The option form is available on your department’s official website, PFRDA website, and can also be obtained from your Drawing and Disbursing Officer (DDO).
Conclusion
The extension of the UPS option deadline to November 30, 2025, provides Central Government employees with additional time to make a critical decision about their retirement benefits. The Unified Pension Scheme offers assured pension benefits with inflation protection, making it an attractive alternative to the market-linked National Pension System.
Employees should carefully evaluate both schemes, consider their long-term financial goals, and consult with financial experts if needed. Remember, this is a one-time opportunity, and the decision once made cannot be reversed.
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