Summary of this article
· PFRDA warns of online glitches in NPS to UPS switching, as the deadline gets closer
· Last date to exercise pension switch option is September 30, 2025
· PFRDA recommends physical submissions to avoid online rush
As the last date to exercise the switching option to the Unified Pension Scheme (UPS) approaches, the Pension Fund Regulatory and Development Authority (PFRDA) has tightened its belt and issued a slew of circulars, including the clarification of the last date for new employees, one-time switch back option from UPS to NPS, and so on. Now, only 15 days are left until the deadline, September 30, 2025, for central government employees to exercise their option of selecting either the National Pension System (NPS) or the UPS. However, failing to do so, NPS will remain the default pension option.
Today, PFRDA posted a message on X (formerly Twitter) warning against the technical glitches one may face as the last date approaches, and submit the switch request offline on the respective application form.
It reads, "In case of unavailability of the online system or any technical glitch in the CRA system, we advise physical submission of #UnifiedPensionScheme (UPS) requests to nodal offices till September 30 2025."
The number of employees who have opted for UPS since the scheme's implementation on April 1, 2025, to mid-July 2025, was not encouraging. Only 31,000 (1 per cent of the eligible employees) have exercised their option. Now, as the deadline comes closer, there could be a rush on the online platform, and thus, PFRDA suggests that eligible employees use the offline mode without waiting.
Per the circular, "If due to any reason, including unavailability of online system or any technical glitch in the CRA system due to which the subscriber is unable to submit the UPS request online through CRA system by September 30 2025, the subscriber can submit the duly filled physical form to the concerned nodal office on or before the due date for further processing by the nodal office."
Suggestions For Amendments In PFRDA Regulations, 2015
Besides, the authority has asked for suggestions from stakeholders by October 17, 2025, for the amendment in the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015.
Besides, the authority has asked for suggestions from stakeholders for the amendment of the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015. One can send the suggestion on the PFRDA's website by October 17, 2025.
The aim is to amend the rules to expand coverage, ease out the processes, and provide more flexibility to the subscribers. The proposed areas for amendment include, redefining "Exit" and expand the definition to include NPS Vatsalya and other schemes to be launched for non-government sector, exit provision for non-government schemes, increasing the National Pension System (NPS) entry and exit age limit, removal of requirement for prior intimation to defer lumpsum or annuity payment, increase in the lumpsum withdrawal limit, and changes in the other withdrawal option, removal of vesting period for those who join the scheme after 60 years of age, revision in partial withdrawal limit, frequencies, and purposes, revision in rules in case of exit from NPS-Vatsalya, and when a person renunciates the citizenship.
