Central Government employees who have opted for UPS. This switch facility may be exercised by UPS optees any time not later than one year prior to the date of superannuation or three months prior to the deemed date of retirement in case of voluntary retirement
📌 Subject
Unified Pension Scheme (UPS) – Introduction of one-time, one-way switch facility from UPS to NPS
🔑 Key Points
1. Switch Facility Announced
Central Government employees who opted for Unified Pension Scheme (UPS) are given a one-time, one-way option to switch back to the National Pension System (NPS).
2. Timeline for Exercising Option
Employees can opt for the switch:
Any time before one year of their date of superannuation.
Three months before deemed retirement date in case of voluntary retirement (VRS).
Similar provisions will apply for resignation and Rule 56J cases with minor changes.
If no option is exercised within the given timeline, the employee will continue under UPS by default.
3. Exclusions (Not Eligible for Switch)
Removal, dismissal, or compulsory retirement as a penalty.
Employees facing disciplinary proceedings (ongoing or contemplated).
4. Implications of Switching to NPS
Once switched, the employee will:
Be governed by PFRDA Exit & Withdrawal under NPS Regulations, 2015.
Lose assured payouts & UPS benefits.
Receive Government’s differential contribution (4%) in default investment pattern, which will be credited to their NPS corpus at exit.
5. Action for Ministries/Departments
All Ministries/Departments are directed to circulate this OM to eligible officers/officials.
6. Authority
Issued with approval of the Competent Authority by Under Secretary, Department of Financial Services (Pension Reforms Section).
✅ In short:
Employees under UPS now have a one-time chance to return to NPS (before retirement timelines). But once exercised, they permanently give up UPS benefits and move fully under NPS rules.
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