Retired Govt NPS Subscribers Eligible for UPS Benefits by June 30, 2025

The Government of India has announced that Central Government employees who retired under the National Pension System (NPS) with at least 10 years of qualifying service on or before March 31, 2025, can now claim additional benefits under the Unified Pension Scheme (UPS). The deadline to apply for these enhanced benefits is June 30, 2025. This marks a significant policy intervention to offer financial security and parity in pension benefits to NPS retirees and their spouses.

Why in News?

The Ministry of Finance recently issued a statement detailing that retired Central Government NPS subscribers (and their spouses) can now claim benefits under the UPS scheme, even if they retired with a minimum of 10 years of service. This expansion of eligibility, announced in May 2025, comes after the initial notification of UPS in January 2025, and aims to bring greater parity and pension assurance compared to the older pension system.

Objectives and Purpose of UPS Extension

• Offer assured monthly pension to Central Government retirees under NPS.
• Provide a financial cushion over and above NPS returns.
• Address concerns of income insecurity among government retirees.
• Provide a one-time option to opt-in for UPS benefits.

Eligibility Criteria

• Central Government employees under NPS.
• Must have retired on or before March 31, 2025.
• Minimum 10 years of qualifying service.
• Spouses of eligible retirees can also apply.

Scheme Benefits

• One-time lump sum: One-tenth of last drawn basic pay + dearness allowance for each six months of qualifying service.
• Monthly top-up: Based on the difference between the UPS payout (including DR) and the annuity received under NPS.
• Arrears: Paid with simple interest at PPF rates.
• Deadline to apply: June 30, 2025.

Static & Background Facts

• National Pension System (NPS): Introduced on January 1, 2004, market-linked retirement scheme.
• Unified Pension Scheme (UPS): Announced in January 2025, assures 50% of last 12 months’ average basic pay as pension.
• The new UPS offers an alternative to the market-linked annuity-based pension under NPS.

Significance of the Move

• Affects approximately 23 lakh government employees.
• Addresses long-standing demands for assured pensions among NPS subscribers.
• A step toward harmonizing old and new pension regimes.
• Enhances social security and reduces financial uncertainty for retirees.