The Centre has informed the Lok Sabha that 1,22,123 employees, including serving employees and retirees, have opted for the Unified Pension Scheme (UPS) as of November 30, 2025. The government had extended the deadline to opt for the UPS twice — first from June 30 to September 30, and then further till November 30, 2025.
Given the subdued response, it was widely expected that the Centre would extend the deadline once again. Getting just over 1.22 lakh employees and pensioners to switch from the National Pension System (NPS) to the UPS — even after two deadline extensions — is clearly not an encouraging outcome for the government, which has pitched the new pension plan as offering “assured and defined benefits” similar to the Old Pension Scheme (OPS), as an optional alternative to the NPS.
The UPS was introduced under the NPS framework for central government employees (and potentially state government employees, if adopted by states) who joined service before April 1, 2025. The scheme offers an assured pension and has an estimated potential coverage of around 23 lakh central government employees, which could rise to about 90 lakh if all states adopt it.
The government has shared fresh details in Parliament on how the UPS is shaping up nearly eight months after it came into effect.
Only 1.22 lakh employees opting for UPS so far indicates a cautious approach by employees despite repeated deadline extensions.
Replying to a question in the Lok Sabha, the finance ministry said “the total number of employees, including new joinees, existing employees, and past retirees, who opted Unified Pension Scheme (UPS) as on 30.11.2025 is 1,22,123.”
Even after two extensions, the total number of employees choosing UPS remained limited, reflecting lingering uncertainty or a wait-and-watch approach among staff.
Employees can switch back to NPS — but only once
To address concerns about flexibility, the government has allowed a one-time, one-way switch back to NPS for employees who had opted for UPS.
According to the finance ministry, employees can revert to NPS:
Up to 12 months before superannuation, or
Up to 3 months before voluntary retirement, or
At the time of resignation or non-penal compulsory retirement
However, this option is not available in cases of dismissal, removal, penal compulsory retirement, or when disciplinary proceedings are ongoing or contemplated.
Once exercised, this switch is final.
What pension does UPS actually guarantee?
The government has notified the Central Civil Services (Implementation of the Unified Pension Scheme under NPS) Rules, 2025, laying out the assured payout structure.
Employees completing 25 years of service are entitled to an assured pension of 50% of the average basic pay drawn during the last 12 months before retirement.
For those with less than 25 years of service, the payout will be proportionate, subject to a minimum qualifying service of 10 years.
After completing 10 years of service, employees are guaranteed a minimum pension of ₹10,000 per month on superannuation.
What happens to the pension after the employee’s death?
Under UPS, family pension is payable only to the legally wedded spouse.
The spouse is entitled to 60% of the pension that the employee was receiving immediately before death. The government clarified that children are not entitled to receive 60% of the assured family payout under the UPS framework if the spouse is not alive.
This clarification is important, as it marks a key difference from expectations many employees had regarding dependent benefits.
Summing up…
The Unified Pension Scheme offers assured and predictable retirement income, something many employees value after years of market-linked NPS returns. However, the relatively low number of opt-ins, repeated deadline extensions, and strict conditions around family benefits show that employees are still carefully weighing the trade-offs.