A one-time switch facility from UPS to NPS introduced by the Union Finance Ministry

Current Context: On August 25, 2025, the Union Finance Ministry introduced a one-time, one-way switch facility from the Unified Pension Scheme (UPS) to the National Pension System (NPS).

• This option is available to Central Government employees enrolled in UPS, up to 1 year before superannuation or 3 months before voluntary retirement.
• Employees facing dismissal, removal, or disciplinary action are not eligible for the switch.
• Once switched, UPS benefits end, and the government’s 4% differential contribution is added to the employee’s NPS corpus at exit.

Question:

Q.1 On August 25, 2025, the Union Finance Ministry allowed Central Government employees a one-time, one-way switch from which pension scheme to the National Pension System (NPS)?
a) Unified Pension Scheme (UPS)
b) Employees’ Provident Fund Scheme (EPFS)
c) Atal Pension Yojana (APY)
d) Old Pension Scheme (OPS)

Answer: a) On August 25, 2025, the Union Finance Ministry introduced a one-time, one-way switch facility from the Unified Pension Scheme (UPS) to the National Pension System (NPS).