Kolkata: Central government employees have the option of choosing between NPS (National Pension System) and UPS (Unified Pension Scheme). On January 24, 2025, the Centre announced the UPS and said that employees can choose between the two modes. It was initially said that those who would retire on or before 31 March 2025 can switch from NPS to UPS. However, it has later said that future employees of the Government of India, who could have already started subscribing to NPS, can also switch to the UPS. Central Government employees currently under NPS and in service as of April 1st, 2025, are eligible to shift to UPS.
Incidentally UPS carries the benefit of a guaranteed pension — the element of guarantee often being a clincher since financial insecurity rises in the advanced years when most do not have any other source of regular cash flow. The rules have said that those employees with 25 years or more of service will be entitled to a pension of 50% of their average basic pay drawn in the last 12 months prior to retirement. A minimum pension of Rs 10,000 has also been stipulated and will be applicable to those who have worked for at least 10 years. If an employee expires, the next of kin will be entitled to 60% of the amount the deceased was getting just before expiry.
How to switch to UPS
The following are the steps of the online process:
Visit the e-NPS portal: nsdl.co.in
Go to Unified Pension Scheme menu
Click on “NPS To UPS Migration”
Type the OTP generated and verify it
Download the e-Signed subscriber shifting form (Migration form) for further reference
If one wants to do it through the offline route, the following are the steps: One has to submit A2 form to the Drawing and Disbursement Officer (DDO). Ensure it is properly filled. The DDO has to first verify the employment details and authorise it. The DDO will begin the shifting request. And it will process it through the CRA system (https://cra-nsdl.com/CRA/).
The way to switch from NPS to UPS is not complicated at all and is menu-driven. However, one must know the benefits of both UPS and NPS before deciding on which mode of pension to choose. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
