Department of Posts Offers One-Time Switch from Unified Pension Scheme to NPS
As per the guidelines, the switch option must be exercised by September 30, 2025, and once chosen, employees cannot revert to UPS.
New Delhi | September 19: The Department of Posts has announced that its employees covered under the Unified Pension Scheme (UPS) will be allowed a one-time, one-way switch to the National Pension System (NPS), following the notification of the Central Civil Services (Implementation of the Unified Pension Scheme under the NPS) Rules, 2025 by the Ministry of Personnel, Public Grievances and Pensions. The rules were published in the Official Gazette on September 2, 2025.
As per the guidelines, the switch option must be exercised by September 30, 2025, and once chosen, employees cannot revert to UPS. Key conditions include:
- The switch can be made only once, and only by eligible UPS subscribers.
- It must be exercised at least one year before superannuation or three months before voluntary retirement (VRS).
- The option is not available in cases of dismissal, removal, compulsory retirement as a penalty, or when disciplinary proceedings are pending.
- Those not opting within the deadline will continue under UPS.
- Subscribers shifting to NPS will receive full NPS benefits, along with a differential 4% contribution.
Officials said the move provides employees with greater flexibility in planning post-retirement financial security, aligning benefits with long-term investment choices.
