Updated 25 November 2025 at 14:29 IST
UPS Or NPS? Pros vs Cons - Which Scheme To Select Before November 30 Deadline
Central government employees and NPS retirees have only until 30 November 2025 to switch to the assured Unified Pension Scheme (UPS). Submit online via CRA or a physical form to the nodal office to secure a guaranteed pension, family pension, inflation indexation and tax benefits.
With just five days left, the clock is ticking for nearly 23 lakh central government employees and past NPS retirees to decide whether to switch to the newly introduced Unified Pension Scheme (UPS) or stay with the existing National Pension System (NPS). The Ministry of Finance has set November 30, 2025, as the final deadline to exercise the option and no further extension is expected.
Why the Deadline Was Extended Twice
The Unified Pension Scheme was originally approved by the Union Cabinet on August 24, 2024 and rolled out from April 1, 2025. Employees were initially given until June 30, 2025, to opt in. Due to lukewarm response and fresh benefits announced later (including the crucial “switch-back” option to NPS), the government first pushed the date to September 30 and then, in a fresh communication to PFRDA, extended it again by two months till November 30, 2025.
As per the release dated November 25, 2025, “The last date for eligible employees and past retirees under NPS to opt for UPS is 30.11.2025.”
Who Can Still Opt for UPS?
The facility remains open for:
- Existing central government employees covered under NPS
- Past retirees who were under NPS
- Legally wedded spouse of deceased past NPS retirees
As the release states, “All eligible employees and past retirees of the Central Government under NPS are urged to submit their UPS requests on time to avail these benefits.”
How to Submit Your UPS Option Before 30 November 2025
Eligible employees have two simple routes:
- Online route: Log in to the CRA (Central Recordkeeping Agency) system operated by NSDL or Protean (formerly UTIITSL) and submit the request electronically.
- Physical route: Download the UPS option form, fill it, sign it, and submit it to your respective Nodal Office (Drawing & Disbursing Officer / Head of Office / PAO) latest by 30 November 2025.
Nodal offices have been directed to process all requests as per the prescribed procedure.
UPS vs NPS: Quick Comparison (What You Really Get)
| Feature | Unified Pension Scheme (UPS) | National Pension System (NPS) |
|---|---|---|
| Assured Pension | Yes, 50% of average basic pay of last 12 months | No, it is a market-linked scheme, no guarantee |
| Family Pension | 60% of pension the employee was drawing | Market-linked annuity only |
| Minimum Guaranteed Pension | Rs 10,000 per month after 10 years of service | No minimum guarantee |
| Inflation Protection | Dearness Relief (like OPS) | No automatic indexation |
| Lump-sum Payment | Yes, along with gratuity | Yes, 60% of corpus is tax-free |
| Employee Contribution | 10% of (Basic + DA) | 10% of (Basic + DA) |
| Government Contribution | Higher - 18.5% (10% from Govt. + 8.5% from Pool Corpus) | 14% |
| On Resignation | Pro-rata pension (recently added benefit) | Only withdrawal of corpus |
| Can Switch Back? | Yes, you can revert to NPS later | N.A. |
| Tax Benefits | Recent exemptions announced | Partial (40% annuity mandatory at retirement) |
Key Benefits That Make UPS Attractive
The government has sweetened the deal with several employee-friendly provisions announced recently:
- Assured pension and family pension
- Inflation-linked dearness relief
- Lump-sum payment at retirement (in addition to gratuity)
- Benefits even on resignation or compulsory retirement
- Full tax exemption on commutation and gratuity (similar to Old Pension Scheme)
- One-time option to switch back to NPS later, if desired
As the release highlights, “By opting for UPS, employees retain the flexibility to switch back to NPS at a later date, should they choose to exercise it.”
What Happens If You Miss November 30?
If you do not submit the option by November 30, 2025, you will automatically continue under the existing NPS architecture with market-linked returns and no assured pension component.. There is no provision mentioned for late applications after this date.
Published By : Tuhin Patel
Published On: 25 November 2025 at 14:29 IST