Pension News: Government Issues Updated FAQs on Unified Pension Scheme (UPS) for Central Government Employees

Pension News: Government Issues Updated FAQs on Unified Pension Scheme (UPS) for Central Government Employees

New Delhi: Ministry of Finance has released an updated pdf of Frequently Asked Questions (FAQs) on the Unified Pension Scheme (UPS), to clarify doubts and ensure smooth implementation of the Unified Pension Scheme (UPS) scheme. The FAQs, updated as of September 13, 2025, were circulated by the Office of the Controller General of Accounts (CGA) through an Office Memorandum dated September 17, 2025.

Unified Pension Scheme was introduced from April 1, 2025, functions under the National Pension System (NPS) framework and provides an assured payout to eligible employees. The FAQs address common queries raised by Drawing and Disbursing Officers (DDOs), Pay and Accounts Offices (PAOs), and subscribers.

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According to the guidelines, both newly recruited and existing Central Government employees covered under NPS are eligible to opt for UPS. Retired employees as of March 31, 2025, and even legally wedded spouses of deceased subscribers, may also exercise the option within the prescribed conditions.

The deadline to opt for UPS is September 30, 2025, unless extended by the government. Employees who fail to exercise this option within the timeline will be deemed to continue under NPS.

The FAQs also confirm that a one-time, one-way switch back to NPS is allowed under specific timelines before retirement, resignation, or voluntary retirement. In such cases, the government contribution structure reverts to the standard NPS model, and assured UPS benefits will no longer apply.

Key details such as qualifying service, PRAN (Permanent Retirement Account Number) allocation, forms required (A1 for new recruits and A2 for existing employees), and KYC documentation have been clearly explained. The forms can be submitted both physically and online through the CRA system, with nodal offices responsible for verification.

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Importantly, UPS subscribers can still maintain voluntary Tier I and Tier II NPS accounts in addition to their UPS account.

The faq pdf document also covers scenarios relating to contributions, investments, benefits in cases of disability or death, as well as the impact of disciplinary or judicial proceedings on benefits.