UPS Rules Notified: The government has notified the rules of the Unified Pension Scheme (UPS), which has given a new option to those central government employees who are already covered under the National Pension System. These rules have been issued on 19 March 2025 and will come into effect from 1 April 2025. To avail the benefits of this scheme, eligible employees will have to apply within the prescribed time limit.

What is Unified Pension Scheme (UPS)?

The Pension Fund Regulatory and Development Authority (PFRDA) has notified new regulations called “Pension Fund Regulatory and Development Authority Operationalisation of Unified Pension Scheme under National Pension System) Regulations, 2025”. This scheme has been brought especially for those central government employees who already come under NPS. This includes current employees, newly recruited employees and those retired employees who are currently under NPS. If a retired employee who had opted for NPS dies, then his legally married wife will also get the right to avail the benefits of UPS.

What is special in UPS rules?

Many important things have been clarified in UPS rules. It includes definitions like “admissible payout”, “family payout” and “default pattern”. Additionally, mediators implementing the scheme will have to maintain data accuracy, follow PFRDA guidelines and report any changes.

Who can choose the UPS option?

According to the notification issued by PFRDA, the UPS option will be open only to those central government employees who are already covered under NPS. This includes current employees, newly appointed employees and retired employees who were earlier under NPS. Apart from this, if any retired employee who had opted for NPS , if he dies and he had not opted for UPS option, then his legally married wife can avail the benefit of this scheme.

When and how to apply for UPS?

Employees wishing to avail UPS will have to apply within three months from April 1, 2025. Newly recruited employees will have to decide within 30 days of joining. If the government deems it necessary, this time limit can also be extended. However, once the UPS is selected, it cannot be changed, so it is important to take the decision carefully.

What is the process to apply for UPS?

To avail UPS, eligible employees need to fill the prescribed forms:

Form A2 – for existing employees

Form A1 – for newly appointed employees

Form B2 – for retired employees

Form B6 – for wife of deceased pensioner

Apply both online and offline

To make the process easier, the application can be made both online and offline.

Online application – can be done through CRA portal.

Offline application – can be done through the head office of the concerned department or DDO.

If an eligible employee does not apply by the deadline, he will remain in NPS and will not be able to avail the benefit of UPS.