The Pension Fund Regulatory and Development Authority (PFRDA) has issued new rules for implementing the Unified Pension Scheme (UPS) under the National Pension System (NPS). These rules, called “Pension Fund Regulatory and Development Authority (Operationalisation of Unified Pension Scheme under National Pension System) Regulations, 2025” have been notified on March 19, 2025, and will come into force on April 1, 2025.
The entire framework, responsibilities, and procedures for implementing UPS have been laid down under these new rules. This scheme will be an option for those central government employees who are already covered under NPS. This includes existing employees, newly recruited employees, and those retired employees who were earlier under NPS. Also, if a retired employee who had opted for NPS dies, then his duly married wife will also get the right to avail the benefits of UPS.
These rules issued by PFRDA also clarify some important terms and definitions, such as “admissible payout”, “family payout” and “default pattern”. Apart from this, the intermediaries who will be involved in implementing this scheme will have to maintain the consistency of data, follow the instructions of PFRDA, and inform about any change if there is any.
Also read: Unified Pension Scheme from April 1: Who qualifies for 50% guaranteed pension?
What is UPS, and who can opt for it?
The PFRDA notification clarified that the scheme will be available to those central government employees who already come under the NPS. This includes employees already in service, newly recruited employees and those retired employees who were earlier under the NPS.
Apart from this, if a retired employee who was in NPS has died and had not opted for UPS, then his legally married wife can avail the benefits of this scheme.
When and how can one opt for UPS?
Employees who want to opt for UPS will have to apply within three months from April 1, 2025. At the same time, newly recruited employees will have to take this decision within 30 days of their joining. If the government deems it necessary, it can also extend this time limit. But once UPS is chosen, it cannot be changed. Therefore, this decision has to be taken carefully.
How to apply for UPS?
To avail the benefits of UPS, employees have to fill out different forms.
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