New Delhi, Sep 18 (NationPress) The Finance Ministry has advised all Central government personnel and former retirees currently under the National Pension Scheme (NPS) to make their decision regarding a switch to the Unified Pension Scheme (UPS) well before the September 30 deadline. This proactive approach is encouraged to avoid any last-minute rush.

According to a statement from the Finance Ministry, "All eligible employees are encouraged to exercise their option before the deadline to prevent any last-minute complications and to guarantee timely processing of their requests. Those who decide to stay with the NPS will not be able to transition to the UPS after this date."

The ministry's Department of Financial Services has released Office Memorandum No. 1/3/2024-PR, dated August 25, 2025, which introduces a one-time, one-way switch facility for Central government employees who have opted for the UPS, enabling them to revert back to the NPS under certain conditions.

Employees eligible to switch to the NPS under the UPS can do so only once and cannot revert back to the UPS, as stated in the announcement.

The switch must be executed at least one year prior to superannuation or three months before voluntary retirement, depending on which comes first.

This option will not be available in cases of removal, dismissal, or compulsory retirement as a penalty, or if disciplinary proceedings are ongoing or anticipated.

Those who fail to make the switch within the designated timeframe will automatically remain under the UPS.

The initiative is designed to empower Central government employees with a well-informed choice for planning their financial security post-retirement. By selecting the UPS, employees maintain the option to later switch back to the NPS, according to the statement.

The Central Civil Services (Implementation of UPS under NPS) Rules, 2025, notified on September 2, address a variety of concerns.

The rules detail how employees can enroll in the UPS and exercise their option clearly. Importantly, individuals who reconsider their choice are not permanently locked in; they can switch back to the NPS one year prior to retirement or three months before opting for voluntary retirement.

The regulations also clarify how contributions will operate under the UPS, encompassing both employee and government contributions, ensuring transparent deductions and matching deposits. In instances where there is a delay by authorities in registering someone under the UPS or crediting their contributions punctually, the employee will receive compensation, safeguarding them against losses due to administrative delays.