Over One Lakh Employees Shift From NPS To UPS As Government Shares Key Pension Data In Parliament

New Delhi: The government has revealed fresh data on the Unified Pension Scheme in the Lok Sabha. According to the Finance Ministry, over 1.22 lakh employees have chosen UPS till November 30, 2025. This number includes serving employees, newly joined staff, and retired personnel. The information was shared in a written reply in Parliament. The government described the uptake as gradual but steady. Officials believe awareness is still increasing. More employees may shift in coming months. The scheme is positioned as an alternative to NPS.

What Share Of NPS Employees Shifted?

Minister of State for Finance Pankaj Chaudhary informed the House that around 4.95 percent of total NPS subscribers have exercised the option to move to UPS. This indicates limited but notable participation so far. The government clarified that the option is voluntary. Employees are not being forced to switch. The choice depends on individual service conditions. Officials say the percentage could rise over time. Awareness campaigns are expected to help. The scheme remains open for eligible categories.

Why Was UPS Introduced By Government?

The Unified Pension Scheme was introduced as an option alongside NPS. The aim is to provide more certainty in retirement income. Under UPS, eligible employees receive assured monthly pension. The amount is calculated based on average basic pay. The government says this offers stability after retirement. Unlike market-linked uncertainty, UPS promises predictability. This was a major concern among employees. The scheme attempts to address that issue. It balances fiscal responsibility with employee security.

Who Can Use One Time Switch Option?

The government clarified that UPS allows a one-time switch option. This can be used at specific stages of service. These include retirement, voluntary retirement, death, or removal from service. The option must be exercised within a defined time limit. Employees cannot switch multiple times. Once chosen, the decision is final. The rule aims to prevent misuse. It also brings clarity to pension planning. Proper documentation is required for switching.

What Benefits Does UPS Offer Families?

UPS includes provisions beyond individual pension. Eligible cases allow family pension benefits. Dependents receive support after the employee’s death. There are also specific benefits for children under defined conditions. Minimum service period rules apply. Once met, assured benefits are granted. The government highlighted these provisions in Parliament. Officials said the scheme is designed with social security in mind. It aims to support families during difficult times.

What Did Government Say On OPS?

The Finance Ministry clearly stated that there is no proposal to restore the Old Pension Scheme for central government employees. This clarification was made in the Lok Sabha. Employees under NPS or UPS will not be covered by OPS. The ministry ruled out reconsideration at present. This statement addresses ongoing demands from employee groups. The government reiterated its current pension framework. No policy change is under active review.

What About States And NPS Funds?

The government also addressed the role of states in pension matters. It noted that some states have restored OPS at their own level. However, states are not allowed to return NPS corpus. Funds already deposited under NPS cannot be transferred back. This applies under existing laws and rules. The Centre emphasized legal limitations. UPS remains the only alternative offered by the central government. Pension policy clarity was reaffirmed in Parliament.