Sitharaman Says No Proposal Under Consideration To Replace Unified Pension Scheme

Finance Minister Nirmala Sitharaman on Monday said there is no proposal under consideration to make any changes or replace the Unified Pension Scheme (UPS) introduced with the objective of providing assured monthly payout after retirement to the Central government employees covered under the NPS.

The total number of employees, including new joinees, existing employees and past retirees, who opted for UPS, as on July 19, 2026 is 1,18,195, Sitharaman said in a written reply in the Lok Sabha.

UPS is a pension scheme introduced by the Government of India, effective April 1, 2025, as an option under the National Pension System (NPS) for Central government employees. It is designed to provide assured, inflation-indexed, and adequate retirement benefits, addressing concerns of longevity protection and pension predictability.

"UPS has been introduced as an option under NPS for the employees of the Central government who are covered under the NPS. As on date, there is no proposal under consideration to make any changes or replace the UPS," she said.

UPS was also available to past retirees who superannuated or retired on or before March 31, 2025 under NPS and had completed 10 years of regular service, as well as to the legally wedded spouse of such eligible deceased retirees.

The UPS has been envisaged to address the demand of the employees covered under NPS regarding assured pension after retirement while ensuring fiscally responsible funded and contributory pension scheme.

As the scheme has been rolled out with effect from April 1, 2025, the government has not reviewed the implementation and performance of the UPS as on date, she said.

"Based on the representations from employees and associations, the cut-off date to opt for UPS was extended up to November 30, 2025. The government extended the benefit of 'Retirement gratuity and Death gratuity' under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021, to the Central government employees covered by UPS," she said.

Further, she said, the government employees who opted for UPS under NPS shall also be eligible for option for availing benefits under the CCS (Pension) Rules, 2021, or the CSS (Extraordinary Pension) Rules, 2023, in the event of death of the government servant during service or his discharge on the ground of invalidation or disablement.

The government also extended tax benefits to UPS as available to NPS, she said.

Additionally, she said, the government allowed the Central government employees, who opted for UPS, one-time one-way switch facility to revert to NPS.