Government imposes September 30 deadline for businesses to transition from NPS to UPS transport services
The Department of Financial Services (DFS) has issued an Office Memorandum on August 25, 2025, providing a one-time, one-way switch facility from the Unified Pension Scheme (UPS) to the National Pension System (NPS) under certain conditions.
The move by the Ministry of Finance aims to give eligible central government employees and past retirees under the National Pension System a choice in securing their post-retirement finances. However, it's important to note that this switch must be used at least one year before the retirement age or three months before voluntary retirement, whichever is earlier.
If the switch is not used within the given time, employees will continue under UPS by default. It's also worth mentioning that employees who remain in NPS after September 30, 2025, will not be able to switch to UPS later.
Employees who shift to UPS retain the option to return to NPS later, under certain conditions. However, the specific conditions for returning to NPS from UPS are not yet clear. The same applies to the required conditions for those who are eligible to switch from UPS to NPS.
It's essential for employees to note that the switch from UPS to NPS will not be available in cases where disciplinary proceedings are pending or expected. Additionally, it will not apply where employees face removal, dismissal, or compulsory retirement as a penalty.
The Ministry of Finance has set September 30, 2025, as the last date for eligible central government employees and past retirees under the National Pension System to opt for the Unified Pension Scheme. The DFS has advised all eligible employees to make their choice for UPS or NPS before this date to avoid last-minute issues.
At present, there is no information available about any specific conditions that employees must meet to return to NPS from UPS or any examples of employees who have successfully returned to NPS from UPS. The article does not discuss any potential benefits or drawbacks of returning to NPS from UPS either.
The DFS encourages all eligible employees to carefully consider their options and make an informed decision based on their individual circumstances and retirement plans. For more detailed information, employees are advised to refer to the Office Memorandum issued by the Department of Financial Services.
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