Unified Pension Scheme sees over 1.18 lakh Central government employees opt in; Centre rules out any changes

More than 1.18 lakh Central government employees, retirees and eligible family members have opted for the Unified Pension Scheme (UPS) since it came into force, with the government saying there is currently no proposal to review or replace the pension framework.

In a written reply in the Lok Sabha on Monday, Finance Minister Nirmala Sitharaman said 1,18,195 subscribers had enrolled under UPS as of July 19, 2026. The subscribers include newly recruited employees, existing Central government staff, past retirees eligible under the scheme and legally wedded spouses of eligible deceased retirees.

UPS was notified on January 24, 2025, and became operational from April 1, 2025 as an option under the National Pension System (NPS). The scheme was introduced to provide an assured monthly pension after retirement to Central government employees covered under NPS while retaining the contributory nature of the pension system.

“The UPS has been envisaged to address the demand of the employees covered under NPS regarding assured pension after retirement while ensuring a fiscally responsible funded and contributory pension scheme,” Sitharaman said in her reply.

Who can opt for UPS?

The option is available to serving Central government employees covered under NPS as well as employees who retired on or before March 31, 2025, provided they completed at least 10 years of regular service. The legally wedded spouse of an eligible deceased retiree can also opt for the scheme.

The finance minister said the government had extended the deadline for exercising the UPS option till November 30, 2025, after receiving representations from employees and their associations.

Over the past year, the Centre has also expanded the benefits available under UPS. Employees covered by the scheme are eligible for retirement gratuity and death gratuity under the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021.

Those opting for UPS also remain eligible to claim benefits under the CCS (Pension) Rules, 2021 or the CCS (Extraordinary Pension) Rules, 2023 in cases of death during service, invalidation or disablement. In addition, the government has extended the same tax benefits available under NPS to UPS subscribers and introduced a one-time, one-way option allowing employees who opted for UPS to switch back to NPS.

No review yet, no proposal to replace scheme

Responding to questions on whether the government had assessed the performance of UPS or was considering any changes, Sitharaman said no review has been undertaken as the scheme has been in force only since April 1, 2025.

“As on date, Government has not reviewed the implementation and performance of the UPS,” she said.

The minister added that there is no proposal under consideration to make any changes or replace the Unified Pension Scheme, signalling that the Centre intends to continue with UPS as its assured-pension option within the NPS framework.