As the deadline is nearing, many are still thinking about NPS or UPS which is better. The Central Government has launched a new Unified Pension Scheme (UPS), giving employees a crucial choice between it and the existing NPS. Find out eligibility, benefits, deadlines, and how to apply before the June 30, 2025 deadline.
NPS or UPS Which is Better: Central Govt Employees Must Act by June 30
The Government of India has officially introduced the Unified Pension Scheme (UPS) from April 1, 2025, creating a significant decision point for central government employees. With the deadline to opt into the new scheme fast approaching on June 30, 2025, employees must decide whether to stick with the market-linked National Pension System (NPS) or switch to the fixed-benefit UPS.
What is the Unified Pension Scheme (UPS)?
UPS offers a guaranteed pension, providing 50% of the average basic pay (from the last 12 months before retirement) for those completing 25+ years of service. This is a big shift from NPS, where pension benefits depend on the investment returns and annuity value at retirement. Now it is to decide between nps or ups which is better.
Why it Matters:
- UPS: Fixed, predictable retirement income.
- NPS: Variable, market-dependent pension amount.
Who Can Opt for UPS?
Eligible beneficiaries include:
- Central government employees under NPS as of April 1, 2025
- Retired employees (before March 31, 2025) with 10+ years of service
- Employees retired under FR 56(j)
- Legally wedded spouses of deceased employees who hadn’t exercised the UPS option
How to Apply for UPS?
Eligible employees must fill:
- Form A2 – for current employees
- Form A1 – for newly recruited employees
Forms can be submitted online or physically to the Head of Office or DDO and are available on the Protean CRA website. Remember to keep an acknowledgment slip for future reference.
Deadline and Irrevocability
Nps or Ups which is better need to be finalised before the deadline ends.
- Deadline for Existing Employees: June 30, 2025
- New Recruits (joining on/after April 1, 2025): Must choose within 30 days of joining
- Important: Once chosen, the decision to opt for UPS is final and cannot be reversed.
What Happens If You Miss the Deadline?
Employees failing to opt for UPS by the deadline will automatically continue under NPS. Legal experts confirm that non-action will be considered a choice to stay with NPS.
Is There a Possibility of Extension?
Though not guaranteed, experts suggest the government may extend the deadline. However, employees are advised not to rely on this and complete their application within the current timeline.
Final Word:
Many Government employees yet to decide between nps or ups which is better. Better visit the official site to know more on this. Carefully evaluate the pros and cons of UPS vs NPS, consult your department, and act before June 30, 2025.
Disclaimer:
This blog post is for informational purposes only. For official guidance, forms, and updates, please refer to the Protean CRA website or contact your respective government office.