Outlook Business Desk
The central government has issued rules for service matters related to benefits under the Unified Pension Scheme (UPS) for its employees. The notification formalises how employees opting for UPS under the National Pension System (NPS) will receive retirement benefits.
''The Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System) Rules, 2025, have been issued in the official Gazette by the Department of Pension and Pensioners’ Welfare to govern service matters and benefits for employees opting for UPS under the NPS,'' the Ministry of Personnel, Public Grievances and Pensions said on Thursday.
The Unified Pension Scheme is a retirement plan under the National Pension System (NPS) for Central Government employees. It offers guaranteed, inflation-adjusted pension benefits, designed to provide reliable income after retirement while ensuring protection against longevity risks.
The Centre approved the Unified Pension Scheme on August 24, 2025, with the rules taking effect from April 1, 2025. The scheme functions under the National Pension System framework and is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
The UPS rules cover enrolment procedures, switching from UPS to NPS before retirement or voluntary exit, contributions by employees and the government, and compensation in case of delays in registration or crediting to NPS accounts.
The rules specify options for benefits under CCS (Pension) Rules or UPS regulations if a government servant dies or becomes disabled while in service, ensuring financial security for employees or their nominees in such events.
The rules clarify the effect of compulsory retirement, dismissal or removal from service on UPS benefits. They also define how ongoing departmental or judicial proceedings at the time of retirement influence the benefits payable.
Manjeet Singh Patel, President of the All India NPS Employees Federation, welcomed the amendment permitting retirement after 20 years of service instead of 25. He described it as a significant step for employee welfare and a major improvement to the UPS framework.