On Oct. 6, 2025, IND PFRDA said IND GVT extended the cut-off date for exercising the option of migrating to the UPS under NPS by two months, up to Nov. 30, 2025.
This extension applies to existing IND GVT employees covered under NPS as of Apr. 1, 2025, who wish to migrate to UPS.
Also applies to claims by IND GVT employees who were under NPS and who have superannuated or voluntarily retired or have retired under Fundamental rules 56(i) without penalty, on or before Mar. 31, 2025.
As well as the legally wedded spouses of such retirees who passed away before exercising the UPS option.
On Jan. 27, IND PFRDA issued proposal re Unified Pension Scheme.
IND PFRDA issued proposed Pension Fund Regulatory and Development Authority (unified pension scheme) regulations, 2025, set out in annexure A, re pensions.
These are proposed regulations for operationalizing the Unified Pension Scheme (UPS) for IND GVT employees, and IND PFRDA seeks feedback with respect to the same.
Proposal also defines obligations, roles, responsibilities of intermediaries and such IND GVT offices involved with implementation of scheme, connected/incidental matters.
Applicability
Available to existing IND GVT employees covered under National Pension System (NPS) as of Mar. 31, 2025; new recruits joining after Apr. 1, 2025 can opt for either UPS or NPS; extends to those who retired under NPS before Mar. 31, 2025.
Option must be exercised within timelines set by IND GVT and will be irrevocable.
Eligibility and Benefits
Minimum 10 years qualifying service required for superannuation benefits; available for voluntary retirement after 25 years of service; assured payout of 50% of average last 12 months basic pay, subject to qualifying service and corpus requirements.
Minimum guaranteed payout of INR 10k per month with 10 years' service; lump sum payment based on length of service; family pension of 60% of assured payout to legally wedded spouse; and the dearness relief is as per the IND GVT rates.
Investment Framework and Withdrawal
Individual corpus funded by 10% contribution each from employee and government.
Additional 8.5% government contribution to pool corpus; subscribers can choose pension fund and investment pattern; default pattern determined by IND PFRDA.
Partial withdrawals allowed after 3-year lock-in period, maximum three partial withdrawals permitted; up to 25% of own contributions can be withdrawn, lump sum withdrawal up to 60% of corpus at retirement; specific conditions apply for eligibility.
Role of Intermediaries and Other Entities
UPS shall be implemented via means of NPS architecture by such of the intermediaries registered with IND PFRDA, namely National Pension System Trust, pension fund, Central Recordkeeping Agency, trustee bank as well as custodian of securities.
The entities involved in implementation process shall perform their roles, duties, obligations, responsibilities in accordance with provisions of specified laws and regs.
Consultation Period
The consultation is open until Feb. 17, 2025.
Mar. 2025 UPS Operationalization
On Mar. 19, 2025, IND PFRDA said the Pension Fund Regulatory and Development Authority (operationalisation of unified pension scheme under national pension system) regulations, 2025 have been gazetted, to operationalize the UPS as above.
Existing employees must exercise option within three months from Apr. 1, 2025; new recruits must exercise option within thirty days of joining service, decision irrevocable.
Those not exercising option within timeline to continue under NPS without UPS option.
The regulations come into effect from Apr. 1, 2025.
Document dated Mar. 19, 2025, received from PFRDA Mar. 20, summarized on Mar. 21.
Apr. 2025 FAQ
On Apr. 9, 2025, IND PFRDA published FAQs regarding the unified pension scheme.
Document dated Apr. 9, 2025, received from IND PFRDA Apr. 11, summarized Apr. 15.
Jun. 23, 2025 IND GVT Deadline Extension
On Jun. 23, 2025, IND GVT extended cut-off date for exercising option under UPS by three months to Sep. 30, 2025; the extension is applicable to eligible existing employees, past retirees, and legally wedded spouses of deceased past retirees.
Document dated Jun. 23, 2025, received from IND GVT Jun. 24, summarized Jun. 27.
Jun. 26, 2025 Extended Deadline Notification
On Jun. 26, 2025, IND PFRDA notified extension of the cut-off date for exercising option UPS under NPS by 3 months, until Sep. 30, 2025, per IND GVT circular above.
Document dated Jun. 26, 2025, was received on Aug. 28, 2025 due to a fixed feed.
Jul. 2025 Tax Benefits
On Jul. 4, 2025, IND GVT announced it has decided that tax benefits as available under NPS shall apply mutatis mutandis to UPS as it is an option under NPS.
This will provide further impetus to the UPS, ensure parity with the existing NPS structure and provide substantial tax relief and incentives to employees opting for UPS.
Sep. 2, 2025 Editorial Update
On Sep. 2, 2025, Reg-Track made an editorial update to the summary above, adding a new sub-heading dated Jun. 26, 2025 and relevant link to an IND PFRDA document.
Sep. 16, 2025 Physical Submission of UPS
On Sep. 16, 2025, IND PFRDA issued circular stating if subscriber cannot submit UPS request online via the CRA system by deadline due to unavailability or technical issues, they may submit duly filled physical form to concerned nodal office by Sep. 30, 2025.
The circular is effective from Sep. 16, 2025.
Document dated Sep. 16, 2025, received from PFRDA Sep. 17, summarized Sep. 19.
Oct. 2025 Extended Cut-off Date
On Oct. 6, 2025, IND PFRDA said IND GVT extended the cut-off date for exercising the option of migrating to the UPS under NPS by two months, up to Nov. 30, 2025.
This extension applies to existing IND GVT employees covered under NPS as of Apr. 1, 2025, who wish to migrate to UPS.
Also applies to claims by IND GVT employees who were under NPS and who have superannuated or voluntarily retired or have retired under Fundamental rules 56(i) without penalty, on or before Mar. 31, 2025.
As well as the legally wedded spouses of such retirees who passed away before exercising the UPS option.
