The Pension Fund Regulatory and Development Authority (PFRDA) has announced new regulations for the United Pension Scheme (UPS) under the National Pension System (NPS). These new rules will be effective from April 1, 2025, and define who is eligible and how central government employees can opt for the scheme.
Who Can Enroll in the Unified Pension Scheme (UPS)?
The scheme covers three categories of central government employees:
– Existing Employees – Already enrolled in NPS as of April 1, 2025.
– New Recruits – Joining the central government on or after April 1, 2025.
– Retired Employees – Previously covered under NPS and retired on or before March 31, 2025, including:
- Superannuated employees
- Voluntary retirees
- Retirees under Fundamental Rule 56(j)
– Spouse Enrollment – If a subscriber passes away before opting for UPS, their legally wedded spouse can apply.
Government Support Under UPS
Subscribers will contribute 10 per cent of their basic pay under the Unifies Pension Scheme (UPS). This includes a non-practicing allowance (if applicable) along with the dearness allowance. This amount will be credited to their Permanent Retirement Account Number (PRAN).
The central government will match this contribution by depositing an equal amount into the subscriber’s PRAN. The government, to ensure assured payouts under the UPS scheme will provide an extra contribution of approximately 8.5 per cent of the combined basic pay and dearness allowance.
