· PFRDA issues clarification for new employees who can exercise NPs to UPS switch option by September 30, 2025
· Application who want to switch need to submit application using Form A1 to the concerned DDO
· NPS remains the default pension scheme if no switch request is submitted
The last date to exercise the option from the National Pension System (NPS) to the Unified Pension Scheme (UPS) is approaching fast. The pension scheme was implemented effective April 1, 2025, for central government employees, offering them an assured pension of 50 per cent of their salary after 25 years of working and on a pro-rata basis for less than 25 working years. The scheme offers an option for the employees, but with a deadline. Employees have to decide which pension option they want to choose and inform their respective government department of their choice by September 30, 2025.
Although the gazette notification of the PFRDA (Operationalisation Of Unified Pension Scheme Under National Pension System) Regulations, 2025, dated March 19, 2025, laid the eligibility rules for this scheme along with the deadline of three months from the date of implementation, that is, April 1, 2025, the deadline has been extended further to September 30, 2025.
While the eligibility criteria for the existing and retired employees as of April 1, 2025, remained the same, PFRDA recently issued a clarification on the eligibility criteria for the new employees. Per the circular dated September 14, 2025, it clarified, “In light of the recent clarifications and developments in the scheme, it has been decided by the Central Government to allow a one-time option to Central Government employees who joined services on or after 01.04.2025 and up to 31.08.2025, and who have opted for NPS, to migrate to Unified Pension Scheme.”
The notable point is the last date. Here is what the guidelines were in the beginning:
As per the Gazette notification on March 19, 2025, the applicable employees include:
• “An existing Central Government employee in service as on April 1 2025, who is covered under NPS, in terms of subsection (1) of section 20 of the Act
• A new recruit in the Central Government services, who joins service on or after the 1st day of April 2025
• A Central Government employee who was covered under NPS and who has superannuated or voluntarily retired or has retired under Fundamental Rules 56(j) (which is not treated as a penalty under Central Civil Services (Classification, Control and Appeal) Rules, 1965), on or before March 31 2025
• The legally wedded spouse in case of a subscriber who has superannuated or retired and has demised prior to exercising the option for UPS.”
Earlier, it was not clear, but the clarification now explicitly mentions the eligibility criteria of new employees who are required to exercise the option by September 30, 2025.
The new employees who have joined the central government service on or after April 1, 2025, need to submit an application on Form A1 of Schedule I to the concerned Drawing and Disbursing Office (DDO) if they want to switch from NPS to UPS. NPS remains the default pension scheme if no switching application is submitted.
