FM Sitharaman Informs Parliament: Over 1.18 Lakh Central Employees Opt for Unified Pension Scheme
More than 118,000 Central Government employees and eligible retirees have enrolled in the Unified Pension Scheme (UPS) since its launch, according to a statement made in Parliament on Monday. Union Finance Minister Nirmala Sitharaman reported that the total number of UPS subscribers reached 118,195 as of July 19, 2026. This figure includes new recruits, current employees, and past retirees who opted into the scheme.
The UPS was introduced as an option under the National Pension System (NPS) to provide a guaranteed monthly payout after retirement. The scheme was officially notified on January 24, 2025, and became effective on April 1, 2025. It aims to address the demand from employees for a reliable pension while maintaining a fiscally responsible structure.
Reasons for Implementation
The government designed the UPS to respond to requests from NPS-covered employees for an assured pension. The initiative retains a contributory framework while ensuring fiscal responsibility. The government also revised certain provisions after receiving feedback from employees and their associations. As a result, the cut-off date for opting into the UPS was extended to November 30, 2025.
Benefits of the UPS
The government has expanded the benefits for employees who choose the UPS. These include retirement and death gratuity under the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021. Employees switching to the UPS will continue to access benefits under existing pension rules in specific situations.
Additionally, those who opt for the UPS will be eligible for benefits under the CCS (Pension) Rules, 2021, or the CSS (Extraordinary Pension) Rules, 2023, in cases of death during service or discharge due to invalidation or disablement. The tax treatment under the UPS aligns with that of the NPS, and a one-time option to revert to the NPS after choosing the UPS has been introduced.
The ministry clarified that no review of the scheme has been conducted since its rollout, and there are currently no proposals to change or replace the UPS.
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