PFRDA Extends Deadline for Central Govt Employees to Switch Pension Plans

The Pension Fund Regulatory and Development Authority (PFRDA) has extended the opportunity for specific central government employees to switch from the National Pension System (NPS) to the Unified Pension Scheme (UPS). This decision, announced by the Union government on September 26, 2023, allows employees who began their service between April 1 and August 31, and initially selected NPS, to make the transition before the new deadline of September 30, 2023.

This extension aligns with existing deadlines for other eligible groups under the UPS framework, which was established to enhance retirement security for employees while offering flexibility. The option to switch back to NPS remains available to those who choose UPS, allowing a change one year before retirement or three months prior to opting for voluntary retirement.

The UPS, which was officially notified by the Ministry of Finance on January 24, aims to provide a more secure post-retirement plan for employees. It seeks to ensure that employees can make informed decisions about their long-term financial planning. “This extension is intended to ensure parity across categories of service entrants,” stated a representative from the government.

In a statement earlier this month, officials emphasized that the CCS (Implementation of UPS under NPS) Rules, 2025, which were notified on September 2, cover various aspects of enrollment and the process for employees to exercise their options clearly.

Furthermore, to address potential administrative delays, the government has assured that employees will be compensated if there are any holdups in registering under the UPS or crediting contributions on time. This measure is designed to protect employees from losing benefits due to administrative lapses.

The PFRDA’s initiative reflects a broader commitment to ensuring that central government employees have access to flexible and secure pension options as they plan for their futures. By offering an extended period to switch to UPS, the government aims to enhance the financial literacy and security of its workforce, ultimately contributing to a more stable retirement for many.