Haryana Cabinet Approves Pension Scheme Shift For Employees: One-Time Switch From UPS To NPS Allowed

The Haryana government approved a one-time switch from the Unified Pension Scheme (UPS) to the National Pension System (NPS). The cabinet, chaired by Chief Minister Nayab Saini, has officially approved the adoption of UPS for the state government employees. This decision will change the retirement benefit framework for employees, with a one-time switch facility to transition between models under specific conditions.

The approval provides state government employees who had previously opted for the UPS with the option to shift back to the NPS. The facility is to provide employees the flexibility to exercise their option at any point during their service, but not later than one year before the scheduled date of superannuation. The deadline is crucial because if an employee doesn’t exercise the switch option within the mandated timeline, according to the policy, they will continue under UPS by default.

The approval of the switching option reflects the government’s efforts to bring state government employee benefits in line with the central government framework and also address the long-term financial planning needs of the employees.

Notably, the central government launched UPS in January 2025, which became effective on April 1, 2025. It gave central government employees a one-time irrevocable option to switch from NPS to UPS, an assured pension scheme. Later, the central government introduced a one-time switch-back option from UPS to NPS, offering employees more flexibility.

The Haryana government adopted the same model and issued a notification in July 2025, allowing state employees to opt for it effective August 1, 2025. And now, it has approved the switch-back option, also similar to the central government’s option.

However, according to a report by the Tribune, the state cabinet has clarified that the option is not universal. It will not be available in cases of removal, dismissal, or compulsory retirement. Besides this, employees who are currently facing ongoing disciplinary proceedings involving a penalty are also prevented from using this switch option.

This decision is expected to impact Haryana’s government sector workforce as they will now have the choice to select either of the two (UPS and NPS) pension schemes to ensure a financially secure retirement for themselves.