Unified Pension Scheme: Just 4% of central government shift to new system

A large number of central government employees still seem to be on the fence about the Unified Pension Scheme (UPS) and most have continued with the National Pension System (NPS).

As per a reply to a Right to Information request shared by the All India NPS/UPS Association, 97,094 employees had switched to the UPS by October 14.

“Total of 24,66,314 Central government employees are enrolled under the NPS. Out of these, 97,094 employees have migrated to the UPS as on 14.10.25,” the All India NPS/UPS Association said in a post on X.

About 38,569 employees from the civil services, 23,529 railway employees and 18,303 postal employees have joined the UPS. As many as 11,144 defence employees have also joined the UPS, as per the RTI response.

At the end of September, the government had extended the last date for switching to the UPS by two months to November 30 for eligible government employees, retirees and spouses of deceased retirees. This was the second such extension from the original date of June 30.

The government has introduced several more incentives to make the UPS attractive such as income tax benefits and an option for a one-time switch from the UPS to the NPS. It has now also allowed central government employees to choose more flexibility in investment options with greater equity allocation under both the NPS and UPS.

However, there continue to be concerns over the complexities in the UPS as well as the reduced rate of government contribution of 10% as against 14% in the NPS. Further, a narrower definition of the family to include only the spouse and a moderate investment pattern with a lack of aggressive equity options, are some of the drawbacks being seen of the UPS.