Good News For Central Government Employees! The government launched the Unified Pension Scheme (UPS) on April 1, 2025, for its employees. The Unified Pension Scheme (UPS) offers a fixed pension after retirement, subject to specific conditions. In contrast, the National Pension System (NPS) does not guarantee a set amount, as the pension depends on the savings accumulated and the annuity purchased at retirement.
Under the UPS, the central government employees who have completed a minimum of 25 years of service will receive a fixed monthly pension equal to 50% of their average basic pay during the last 12 months before retirement. Unlike the NPS, where the pension amount depends on the accumulated corpus and the annuity purchased, the UPS provides greater certainty and financial security for retiring government employees.
The existing central government employees who wish to switch from the NPS to the new UPS must do so within three months of its launch—by June 30, 2025.
If a central government employee does not opt for the UPS by June 30, 2025, or any extended deadline, they will remain under the National Pension System (NPS) and will be deemed to have chosen to stay with it.
To opt for UPS, eligible central government employees need to submit either Form A1 or Form A2, available on the Protean CRA website. These forms must be filled and submitted as part of the application process.
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