Unified Pension Scheme (UPS): Option Deadline Extended till November 30, 2025

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The Central Government has once again extended the deadline for choosing the Unified Pension Scheme (UPS). Employees now have time till November 30, 2025 to exercise their option.

Originally, the last date to opt for UPS was June 30, 2025, later extended to September 30, 2025, and now pushed further by two more months. The decision, approved by the Finance Minister, reflects the government’s intent to give employees additional time to make a well-informed choice.

A Quick Recap: What is the Unified Pension Scheme (UPS)?

Launched on April 1, 2025, the Unified Pension Scheme aims to blend the advantages of both the Old Pension Scheme (OPS) and the New Pension System (NPS). It offers assured pension benefits while maintaining a structured contributory framework.

Under UPS:

Employees contribute 10% of their basic pay plus dearness allowance.
The Central Government contributes 18.5%, making the plan financially stronger and more predictable than NPS.

This hybrid approach ensures long-term pension security while balancing fiscal sustainability.

Why Was the Deadline Extended Again?

As of now, reports indicate that barely 1 lakh of the 23 lakh eligible central government employees have opted for the UPS. Many employees and associations had requested an extension, citing a need for more time to understand the scheme’s benefits and compare it with existing pension options.

The Department of Financial Services (DFS), under the Ministry of Finance, has also directed the Pension Fund Regulatory and Development Authority (PFRDA) to make the necessary system adjustments for the extended timeline.

Major Benefits Under the Unified Pension Scheme

The government hopes that the new benefits and extended timeline will encourage more employees to switch to UPS. Some of the notable advantages include:

Full Pension After 20 Years of Service:
Earlier, employees needed 25 years of service for full pension eligibility. Now, with 20 years, many—especially paramilitary personnel who retire early—stand to gain.
Enhanced Family Protection:
UPS ensures better financial security for the family in case of the employee’s disability or death.
Structured Contribution, Assured Benefits:
While UPS remains contributory in nature, it promises a predictable and assured pension—something that employees had been seeking for long.

How This Impacts Employees

For central government employees, the Unified Pension Scheme offers a middle ground — combining the security of OPS and the discipline of NPS.

Those nearing retirement can especially benefit from the assured returns and family safety features, while younger employees can appreciate the long-term sustainability and government backing.

Bottom Line

The government’s move to extend the UPS option deadline till November 30, 2025, is a welcome relief for employees still weighing their choices. With the improved pension benefits, shorter qualifying service, and robust government contribution, UPS is emerging as a balanced and employee-friendly pension model.

As more awareness spreads and system adjustments take effect, the Unified Pension Scheme could redefine retirement security for India’s central government workforce.