More than 1.18 lakh Central Government employees and eligible retirees have opted for the Unified Pension Scheme (UPS) since its rollout, the government informed Parliament on Monday.In a written reply in the Lok Sabha, Union finance minister Nirmala Sitharaman said the total number of UPS subscribers stood at 1,18,195 as of July 19, 2026. This includes new recruits, existing employees and past retirees who chose to come under the scheme.The ministry of finance said the UPS, which was notified on January 24, 2025, was introduced as an option under the National Pension System (NPS) to provide an assured monthly payout after retirement to eligible Central Government employees.“Unified Pension Scheme (UPS), notified on 24.01.2025, has been introduced as an option under National Pension System (NPS) with the objective of providing assured monthly payout after retirement to the Central Government employees covered under the NPS,” the reply stated.“UPS was also available to past retirees who superannuated or retired on or before 31.03.2025 under NPS and had completed 10 years of regular service, as well as to the legally wedded spouse of such eligible deceased retirees,” the minister added.Why was the scheme introduced?The pension framework came into effect on April 1, 2025. According to the government, it was designed to respond to demands from employees covered under the NPS for an assured pension while retaining a contributory and fiscally responsible structure.“The UPS has been envisaged to address the demand of the employees covered under NPS regarding assured pension after retirement while ensuring fiscally responsible funded and contributory pension scheme.”It added that the government revised certain provisions after receiving representations from employees and their associations.“Based on the representations from employees and associations, the cut-off date to opt for UPS was extended upto 30.11.2025,” the response detailed.Benefits available under the UPSThe government also expanded the benefits available to employees who opted for the UPS.“The Government extended the benefit of ‘Retirement gratuity and Death gratuity’ under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021, to the Central Government employees covered by UPS,” the ministry said.Furthermore, employees who switched to the UPS would continue to have access to benefits under existing pension rules in specified circumstances.“Further, the Government employees who opted for UPS under NPS shall also be eligible for option for availing benefits under the CCS (Pension) Rules, 2021, or the CSS (Extraordinary Pension) Rules, 2023, in the event of death of the Government servant during service or his discharge on the ground of invalidation or disablement,” the reply added.The ministry said tax treatment under the UPS has been aligned with that of the NPS.“The Government also extended tax benefits to UPS as available to NPS,” the reply noted.It also introduced a one-time option for employees to return to the NPS after opting for the UPS.“Additionally, the Government allowed the Central Government employees, who opted for UPS, one-time one-way switch facility to revert to NPS,” the response said.Responding to questions on whether the scheme had been evaluated or whether any changes were planned, the ministry explained that no review had been undertaken so far as the scheme has been in force only since April 1, 2025.“As the scheme has been rolled out w.e.f. 01.04.2025, Government has not reviewed the implementation and performance of the UPS as on date,” the reply added. “As on date, there is no proposal under consideration to make any changes or replace the UPS.”
