Unified Pension Scheme notified for govt employees: Date, eligibility, enrollment forms, what’s new—All you need to know

The Pension Fund Regulatory Authority of India (PFRDA) last week notified the operationalisation of the Unified Pension Scheme (UPS) for central government employees, according to a PTI report. This comes after a January notification for the scheme for central government employees covered under the National Pension Scheme (NPS), it added.

We explain all details — from the start date, eligibility criteria, enrollment form requirment, what's new, and more.

Unified Pension Scheme: What Does It Entail?

The UPS promises to give central and state government employees an assured pension of 50 per cent of their average basic pay drawn over the past 12 months, prior to superannuation.

Superannuation or a company pension plan, is the retirement scheme offered by employers to their employees, wherein tax benefit funds are collected in individual employee accounts till age of retirement.

When Does Unified Pension Scheme Come Into Effect?

According to the PFRDA statement, the UPS regulations will come into effect from April 1, 2025.

The notified regulations allows central government employees in service by April 1, 2025 and covered under NPS; as well as newly employees recruited on or after April 1, 2025 to be enrolled under UPS.

Where Can you Access Unified Pension Scheme Enrollment Forms?

All central government employees can find the enrolment and claim forms online from April 1, 2025 on the official website of Protean CRA here — https://npscra.nsdl.co.in

For those who prefer, forms can also be submitted physically, the notice added.

Who is Eligible for Unified Pension Scheme?

The choice between NPS and UPS option is available to 23 lakh central government employees.

The assured UPS payment will not be available to those employees who are removed, dismissed or resign from service, the PFRDA notification.

Unified Pension Scheme: Top Things You Need to Know

• The full rate of assured payout is 50 per cent of 12 monthly average basic pay, immediately prior to superannuation, subject to a minimum qualifying service of 25 years against a market returns linked payout under the NPS.
• The Prime Minister Narendra Modi-led Union Cabinet approved UPS for central government employees on August 24, 2024. The NPS came into effect on January 1, 2004.
• Under the old pension scheme (OPS), effective prior to January 2004, employees got 50 per cent of their last drawn basic pay as pension.
• UPS is contributory in nature, wherein employees will be required to contribute 10 per cent of their basic salary and dearness allowance while the employer's contribution (the central government) will be 18.5 per cent. However, the eventual payout depends on the market returns on that corpus, mostly invested in government debt.

(With inputs from PTI)