Unified Pension Scheme (UPS) is a Central Government pension scheme introduced for eligible Central Government employees covered under the National Pension System (NPS). Approved by the Union Cabinet on 24 August 2024 and effective from 1 April 2025, the scheme provides an assured pension of 50% of the average basic pay (subject to the prescribed qualifying service), a minimum monthly pension of Rs. 10,000, and a family pension equal to 60% of the employee’s admissible pension. According to the Government of India, the scheme benefits around 23 lakh Central Government employees.
Unified Pension Scheme Highlights | |
|---|---|
| Scheme Name | Unified Pension Scheme (UPS) |
| Nodal Ministry | Ministry of Finance, Government of India |
| Implementing Authority | Department of Financial Services (DFS) in coordination with the Pension Fund Regulatory and Development Authority (PFRDA) |
| Cabinet Approval | 24 August 2024 |
| Effective From | 1 April 2025 |
| Objective | Provide an assured and inflation-indexed pension to eligible Central Government employees covered under NPS |
| Assured Pension | 50% of the average basic pay after completing the prescribed qualifying service |
| Minimum Pension | Rs. 10,000 per month after completing the prescribed qualifying service |
| Family Pension | 60% of the employee’s admissible pension |
| Government Contribution | 18.5% of Basic Pay and Dearness Allowance (DA) |
| Beneficiaries | Around 23 lakh eligible Central Government employees |
| Option Status | Existing eligible NPS employees had a one-time option up to 30 November 2025; eligible new recruits can choose UPS at the time of joining Government service. |
| Application Mode | Online through the CRA portal or offline using the prescribed application form |
| Official Portal | PFRDA – Unified Pension Scheme |
Introduction of Unified Pension Scheme: A Brief Insight
The Unified Pension Scheme (UPS) was introduced to provide eligible Central Government employees covered under the National Pension System (NPS) with a more predictable retirement income. Instead of relying entirely on market-linked pension outcomes, the scheme offers an assured pension subject to the prescribed eligibility and qualifying service conditions.
The Union Cabinet approved the Unified Pension Scheme on 24 August 2024. It came into effect on 1 April 2025 under the Ministry of Finance, Government of India, and is implemented through the Pension Fund Regulatory and Development Authority (PFRDA) under the notified UPS Regulations.
The scheme aims to provide eligible Central Government employees with an assured, inflation-indexed, and predictable pension while continuing within the framework of the National Pension System.
An employee who completes 25 years or more of qualifying service is entitled to an assured pension equal to 50% of the average basic pay, subject to the scheme provisions. Employees with at least 10 years of qualifying service are eligible for a minimum assured pension of Rs. 10,000 per month. The scheme also provides a family pension equal to 60% of the employee’s admissible pension, Dearness Relief as applicable, and a lump-sum retirement benefit in accordance with the notified rules.
Eligible recruits joining the Central Government on or after 1 April 2025 can opt for the Unified Pension Scheme at the time of joining. Existing eligible NPS employees were provided a one-time option to switch to UPS, and that option window has now closed.
Eligible employees can exercise their option through the prescribed online or offline process notified by PFRDA and the Central Government. The detailed application procedure is explained later in this article.
For assistance related to the Unified Pension Scheme, employees may contact their respective Drawing and Disbursing Officer (DDO), Head of Office, or the Pension Fund Regulatory and Development Authority (PFRDA).
Government employees planning their retirement can also explore NPS Sanchay for long-term retirement planning. Parents can learn about NPS Vatsalya, while readers interested in other retirement and employee welfare initiatives can visit our Central Government Welfare Schemes List section.
Benefits Provided to Eligible Beneficiaries
The Unified Pension Scheme (UPS) provides eligible Central Government employees with an assured, inflation-indexed pension along with financial security for their families after retirement.
- Provides an assured pension equal to 50% of the average basic pay drawn during the last 12 months before retirement, subject to completing 25 years of qualifying service.
- Provides a proportionate assured pension to employees completing qualifying service between 10 and 25 years.
- Guarantees a minimum pension of Rs. 10,000 per month after completing at least 10 years of qualifying service.
- Provides a family pension equal to 60% of the employee’s admissible pension to the eligible family member.
- Applies Dearness Relief, as notified by the Central Government, to the assured pension, family pension, and minimum pension.
- Provides a lump-sum retirement benefit equal to one-tenth of the monthly emoluments for every completed six months of qualifying service, in accordance with the scheme provisions.
- Offers tax benefits in accordance with the applicable provisions governing the National Pension System and the Income-tax Act.
- The Central Government contributes 18.5% of the employee’s Basic Pay and Dearness Allowance (DA) towards the scheme in accordance with the notified UPS framework.
Eligibility Conditions Required to be Fulfilled
The Unified Pension Scheme (UPS) is available only to eligible Central Government employees covered under the National Pension System (NPS). Eligibility depends on the employee’s date of appointment, service status, and the conditions prescribed under the notified UPS Regulations.
- Eligible recruits joining Central Government service on or after 1 April 2025 can opt for the Unified Pension Scheme at the time of joining.
- Eligible Central Government employees covered under NPS who joined service on or after 1 January 2004 were provided a one-time option to switch to UPS. The option window closed on 30 November 2025.
- Eligible employees who retired under NPS on or before 31 March 2025 were also allowed to exercise the one-time option, subject to the notified scheme conditions.
- Eligible legally wedded spouses of deceased NPS subscribers covered under the notified provisions were also permitted to exercise the option within the prescribed timeline.
- A minimum qualifying service of 10 years is required to receive the assured minimum pension of Rs. 10,000 per month.
- A qualifying service of 25 years is required to receive the full assured pension equal to 50% of the average basic pay, subject to the scheme provisions.
- Employees who were ineligible under the notified UPS Regulations, including specified disciplinary or penalty-related cases, could not exercise the one-time option.
Documents Required to be Attached
Eligible employees opting for the Unified Pension Scheme (UPS) should submit the prescribed option form along with the information required by their department. Since the scheme is linked to the National Pension System (NPS), most service details are verified from official government records.
- Duly filled prescribed UPS option form (such as Form A1, wherever applicable).
- Permanent Retirement Account Number (PRAN) allotted under the National Pension System (NPS).
- Employee and service details as required by the concerned department.
- Identity or supporting documents such as Aadhaar Card, Voter ID Card or PAN Card, if requested by the competent authority during verification.
- Any other document prescribed by the Central Government, PFRDA, or the concerned department.
Important: The one-time option for eligible existing NPS employees closed on 30 November 2025. Eligible recruits may opt for the Unified Pension Scheme at the time of joining Government service in accordance with the notified UPS procedures.
How Beneficiaries Can Apply to Avail the Benefit of this Scheme
Eligible new recruits joining the Central Government on or after 1 April 2025 may opt for the Unified Pension Scheme (UPS) at the time of joining Government service. The one-time option provided to eligible existing NPS employees closed on 30 November 2025.
Online Method
Step 1: Obtain a Permanent Retirement Account Number (PRAN) under the National Pension System (NPS) through the prescribed joining process.
Step 2: Log in to the designated Central Recordkeeping Agency (CRA) portal using the allotted credentials.
Step 3: Exercise the option for the Unified Pension Scheme through the online facility made available by the CRA, wherever applicable.
Step 4: Verify the details entered in the application and submit the option within the prescribed timeline.
Step 5: Keep the acknowledgement or confirmation generated after successful submission for future reference.
Offline Method
Step 1: Obtain the prescribed UPS option form (such as Form A1, wherever applicable) from the concerned department or download it from the official UPS portal.
Step 2: Fill in the required personal, service, and PRAN details accurately.
Step 3: Submit the completed form along with any supporting documents, if required by the concerned department.
Step 4: Submit the application to the Head of Office or the Drawing and Disbursing Officer (DDO) for verification.
Step 5: After verification, retain the acknowledgement or record of submission for future reference.
Important: The option exercised under the Unified Pension Scheme is governed by the notified UPS Regulations. Eligible employees should carefully review the applicable rules before submitting their option, as the choice is subject to the provisions prescribed by the Central Government and PFRDA.
Unified Pension Scheme vs NPS vs Old Pension Scheme
UPS vs NPS vs Old Pension Scheme | |||
|---|---|---|---|
| Feature | Old Pension Scheme (OPS) | National Pension System (NPS) | Unified Pension Scheme (UPS) |
| Employee Contribution | None | 10% of Basic Pay and DA | 10% of Basic Pay and DA |
| Government Contribution | Paid from Government funds | 14% of Basic Pay and DA | 18.5% of Basic Pay and DA |
| Pension | Assured under applicable pension rules | Depends on accumulated corpus and market performance | Assured pension subject to UPS eligibility conditions |
| Inflation Protection | Dearness Relief as applicable | No assured Dearness Relief on pension | Dearness Relief as applicable |
| Qualifying Service for Full Assured Pension | As per applicable pension rules | Not applicable | 25 years |
The Unified Pension Scheme combines the contributory structure of the National Pension System with an assured pension framework for eligible Central Government employees, subject to the conditions prescribed under the notified UPS Regulations.
Sample Pension Calculation Under Unified Pension Scheme
Illustrative Example: If an eligible employee retires after completing 25 years of qualifying service and their average basic pay during the last 12 months before retirement is Rs. 80,000, the assured pension under UPS would generally be 50% of that amount, resulting in a monthly pension of approximately Rs. 40,000, subject to the notified UPS provisions.
Employees with qualifying service between 10 and 25 years are entitled to a proportionate assured pension. The exact amount is calculated according to the methodology prescribed under the Unified Pension Scheme Regulations.
Important Links Available
- Department of Financial Services – Unified Pension Scheme (Official Portal)
- PFRDA – Unified Pension Scheme Information Page
- PIB – CCS (Implementation of Unified Pension Scheme) Rules
- PIB – Cabinet Approval of Unified Pension Scheme
- PFRDA – Official Unified Pension Scheme FAQs (PDF)
Contact Details in Case of Help Needed
- Contact your department’s Drawing and Disbursing Officer (DDO) or Head of Office for assistance with the Unified Pension Scheme.
- Pension Fund Regulatory and Development Authority (PFRDA)
E-500, Tower E, 5th Floor,
World Trade Centre,
Nauroji Nagar,
New Delhi – 110029 - UPS Toll-Free Helpline: 1800-571-2930
- General Telephone: 011-26517097
Frequently Asked Questions (FAQs)
Q. What is the Unified Pension Scheme?
Ans. Unified Pension Scheme is a Central Government pension scheme that provides an assured, inflation-indexed pension to eligible Central Government employees as an option under the National Pension System (NPS).
Q. When did the Government of India approve the Unified Pension Scheme?
Ans. The Union Cabinet approved the Unified Pension Scheme on 24 August 2024, and it became effective from 1 April 2025.
Q. How much pension does an employee get under the Unified Pension Scheme?
Ans. An employee with 25 years or more of qualifying service is eligible for an assured pension equal to 50% of the average basic pay drawn during the last 12 months before retirement, subject to the scheme provisions.
Q. What is the minimum pension under the Unified Pension Scheme?
Ans. Eligible employees receive a minimum assured pension of Rs. 10,000 per month after completing at least 10 years of qualifying service.
Q. Does the Unified Pension Scheme provide a family pension?
Ans. Yes. The eligible family receives a family pension equal to 60% of the employee’s admissible pension, along with Dearness Relief as applicable under the scheme.
Q. Can existing NPS employees still switch to the Unified Pension Scheme?
Ans. No. The one-time option for eligible existing NPS employees closed on 30 November 2025. Eligible new recruits can opt for the scheme at the time of joining Central Government service.
Q. Who can choose the Unified Pension Scheme now?
Ans. Eligible recruits joining Central Government service on or after 1 April 2025 can choose the Unified Pension Scheme at the time of joining, in accordance with the notified UPS Rules.
Q. How much does the government contribute under the Unified Pension Scheme?
Ans. The Central Government contributes 18.5% of the employee’s Basic Pay and Dearness Allowance (DA) towards the Unified Pension Scheme in accordance with the notified UPS framework.
Q. Does the Unified Pension Scheme provide inflation protection?
Ans. Yes. Dearness Relief, as notified by the Central Government, is applicable to the assured pension, family pension, and minimum assured pension.
Q. Does the Unified Pension Scheme provide a lump-sum retirement benefit?
Ans. Yes. Eligible employees receive a lump-sum retirement benefit equal to one-tenth of the monthly emoluments for every completed six months of qualifying service, in accordance with the notified UPS Rules.
Q. Can an employee switch back from the Unified Pension Scheme to the NPS?
Ans. Employees should exercise their option carefully. The option under the Unified Pension Scheme is governed by the notified UPS Regulations and the applicable rules issued by the Central Government and PFRDA.
Q. Whom should employees contact for help with the Unified Pension Scheme?
Ans. Employees should first contact their department’s Drawing and Disbursing Officer (DDO) or Head of Office. They may also contact the Pension Fund Regulatory and Development Authority (PFRDA) for official guidance.
Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.