UPS Enrollment Surpasses 31,555 as Deadline Approaches
Over 31,555 central government employees have enrolled in the Unified Pension Scheme (UPS) as of July 20, 2025, with the final enrollment deadline set for September 30, according to parliamentary disclosures. Finance Minister Nirmala Sitharaman highlighted that the scheme, introduced under the National Pension System (NPS) on April 1, 2025, offers assured payouts to participants. The government has extended the cutoff date for enrollment by three months, responding to feedback from employees and associations. As of July 20, 7,253 claims under UPS have been received, with 4,978 processed for benefit payments, underscoring the scheme’s growing traction among public servants.
Eligibility and Expanded Benefits for Retirees
The UPS now includes provisions for retired central government subscribers, with 25,756 individuals qualifying for additional benefits under the scheme. Eligibility criteria specify that these retirees must have superannuated, died, or retired under Fundamental Rules 56(j) by March 31, 2025, with at least 10 years of qualifying service. The government has also extended ‘Retirement gratuity and Death gratuity’ benefits, ensuring financial security for beneficiaries. Employees opting for UPS under NPS are now eligible to claim benefits under the CCS (Pension) Rules, 2021, or the CCS (Extraordinary Pension) Rules, 2023, in cases of death during service or discharge due to invalidation.
Tax Advantages and Policy Clarifications
UPS participants enjoy tax benefits mirroring those of the NPS under the Income Tax Act, 1961, further enhancing the scheme’s appeal. Sitharaman emphasized that while UPS remains a specialized option for central government employees under NPS, there are no immediate plans to expand such benefits to other pension schemes or sectors. The government’s focus remains on ensuring transparency and financial stability for current and retired employees, aligning with its broader goal of modernizing pension frameworks. This approach aims to balance fiscal responsibility with the welfare of public sector workers.
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