NPS to UPS switch: Check link and steps on how to shift to Unified Pension Scheme

Beginning on April 1, 2025, National Pension Scheme (NPS) subscribers are now able to transition to the newly introduced Unified Pension Scheme (UPS). This transition is designed to provide central government employees with a guaranteed pension, government contributions, and increased investment flexibility post-retirement. The migration from NPS to UPS is currently accessible on the official CRA (Central Recordkeeping Agency) portal. 

Eligible individuals interested in switching to the Unified Pension Scheme (UPS) from the National Pension System (NPS) can easily initiate the migration process by visiting the official website at npscra.nsdl.co.in/ups.php. Physical forms are also available for submission.

"Attention NPS subscribers! The option to migrate to the Unified Pension Scheme (UPS) is now LIVE! "NPS subscribers can now migrate to the UPS! Simply visit [https://npscra.nsdl.co.in/ups.php] and select UPS under NPS to make the switch," the social media post read.
 

UPS rollout

The much-anticipated Unified Pension Scheme (UPS), introduced by the Central Government, represents a significant change in the retirement benefits structure for employees enrolled in the National Pension System (NPS).

The Pension Fund Regulatory and Development Authority (PFRDA) has recently completed the regulations required to implement the UPS. This scheme will be applicable to three groups of Central Government employees: those currently employed as of April 1st, 2025, new hires joining after that date, and individuals who have retired after being part of the NPS, regardless of whether they retired on or before March 31st, 2025. This extension is set to benefit approximately 23 lakh government employees.

Eligibility

Employees who have served between 10-25 years will receive a pension that is in proportion to their years of service, resulting in higher payouts for longer tenures.

Individuals who complete a minimum of 10 years of qualifying service are guaranteed a pension of at least Rs 10,000 per month.

Under the UPS scheme, employees contribute 10% of their basic salary and dearness allowance towards their pension, with the government matching this contribution, making a total of 20% of the salary being invested.

While the government's default schemes manage these contributions, employees have the option to choose private pension fund managers for their investments.

The UPS also provides financial support to the spouse of a pensioner, with the spouse receiving 60% of the pension amount in case of the pensioner's demise, ensuring financial stability for retirees and their families.

Enrollment

Starting April 1, eligible employees can conveniently enroll in the UPS program through the Protean CRA portal. Participants will have the option to submit their enrollment and claim forms electronically. The new program offers a 50% pension based on the average basic pay from the last 12 months before retirement, given that the employee has completed a minimum of 25 years of service. In the event of an employee's passing, their family will receive 60% of the pension. Moreover, the UPS guarantees a minimum pension of Rs 10,000 per month, provided the employee has served a minimum of 10 years.

Retirement withdrawals
Upon retirement, employees will receive their pension from their savings, much like a systematic withdrawal plan (SWP) in mutual funds. If their savings run out before their passing or their spouse's, payments will be supported by a government-managed pool.

Currently, the Universal Pension Scheme (UPS) is exclusively offered to central government employees. State governments will determine whether to implement the program for their employees.