1.18 Lakh Central Employees Opt for Unified Pension Scheme

# 1.18 Lakh Central Employees Opt for Unified Pension Scheme ### Why in News? The Ministry of Finance reported that **1,18,195 Central Government employees** have migrated to the **Unified Pension Scheme (UPS)** as of July 19, 2026. ### What is the Unified Pension Scheme? The **UPS** is a **contributory pension framework** designed to provide an **assured monthly payout** after retirement for employees covered under the **National Pension System (NPS)**. It was notified on **January 24, 2025**, and became effective from **April 1, 2025**. - **Eligibility** includes new recruits, current staff, and retirees who superannuated on or before **March 31, 2025**. Past retirees must have completed **10 years of regular service**. - Employees are allowed a **one-time one-way switch** to revert to NPS, and the scheme provides social security coverage for death during service or discharge due to invalidation. - **Tax benefits** under UPS are at par with existing NPS benefits, and gratuity is extended under the CCS (Payment of Gratuity under NPS) Rules, 2021. ### Why is this relevant for exams? Understanding the difference between **UPS** and **NPS** is crucial. While NPS is a **market-linked contributory scheme** regulated by the **Pension Fund Regulatory and Development Authority (PFRDA)**, UPS offers an **assured pension** with a government contribution. The migration deadline was **November 30, 2025**, and no proposal is under consideration to alter or replace the scheme. ### Exam Connect **Unified Pension Scheme (UPS)** → Assured pension, notified **January 2025**, effective **April 2025** **National Pension System (NPS)** → Implemented for central employees (except Armed Forces) from **January 1, 2004**, regulated by **PFRDA**