The Finance Ministry has extended the deadline for central government employees to opt for the Unified Pension Scheme (UPS) until November 30, 2025. Earlier, employees had until September 30 to make their choice, but a low response under the National Pension System (NPS) prompted the government to give more time.
In an official letter to the Pension Fund Regulatory and Development Authority (PFRDA), the Department of Financial Services said the extension was approved by the Finance Minister. The move comes after requests from employees and other stakeholders following recent improvements in the UPS.
Some of the changes include a switch option, benefits related to resignation and compulsory retirement, and tax exemptions. These updates have encouraged more employees to consider joining the scheme. The extension now applies not only to current employees but also to past retirees and legally wedded spouses of deceased retirees who are eligible to opt for the UPS.
The Unified Pension Scheme was introduced on April 1, 2025, as part of the NPS for central government employees. It offers assured pension payouts to around 23 lakh employees who joined the government after January 1, 2004, when the old pension scheme was discontinued.
Under the UPS, employees contribute 10 per cent of their basic salary and dearness allowance, while the government contributes 18.5 per cent. This is different from the old pension system, where employees received 50 per cent of their last basic pay as pension without making any contributions.
So far, around 31,555 employees had opted for the UPS by July 20, and nearly 1 lakh employees had signed up by the original September 30 deadline. With the extension, more employees are expected to join in the coming months.
The PFRDA has been instructed to update its systems and issue necessary regulations and circulars to implement the government’s decision. The Finance Ministry said the move aims to give employees adequate time to understand the benefits of the UPS and make informed choices.
Shivam Verma is a journalist with over three years of experience in digital newsrooms. He currently works at NewsX, having previously worked for Firstpost and DNA India. A postgraduate diploma holder in Integrated Journalism from the Asian College of Journalism, Chennai, Shivam focuses on international affairs, diplomacy, defence, and politics. Beyond the newsroom, he is passionate about football—both playing and watching—and enjoys travelling to explore new places and cuisines.
