Is UPS a Flop Scheme? Only a Few Central Govt Staff Opt for UPS

The Government of India launched the UPS scheme expecting it to be a success. However, the scheme has failed since its launch. Initially, only a small number of central government employees opted for it. When employees did not show interest, the Government made changes and introduced a revamped version of the scheme. But even now, employees are not joining the modified UPS scheme.

Only about one lakh out of 23 lakh central government employees have so far chosen the new Unified Pension Scheme (UPS), even after the scheme was revised with additional benefits. Due to this low response from employees, the government may extend the last date to join UPS Scheme i.e. 30 September 2025.

According to sources, several employee associations have written to the Cabinet Secretary seeking a two-month extension. They want more time for employees to make the one-time switch from the National Pension Scheme (NPS) to UPS. On Monday, representatives of these associations also met officials from different ministries to press for an extension.

Later that evening, senior officials from the finance and pension-related departments held detailed discussions on whether another extension should be given. The deadline had already been extended once from June 30.

The UPS was launched in March 2025 as a major pension reform. But the response has remained lukewarm due to concerns about financial security, the earlier requirement of 25 years of service for full pension, and a narrow definition of ‘family’.

To make it more attractive, the government notified new rules this month under the Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System) Rules, 2025. The changes included:

• Full pension after 20 years of service instead of 25 years, which benefits paramilitary personnel who often take early retirement.
• Better financial protection for families in cases of disability or death during service.

Even after these changes, employees are not happy with the scheme.

In a September 25 letter, the National Council of the Joint Consultative Machinery highlighted that many employees, especially those in remote areas, had not been able to understand or act on the new rules in time. It warned that communication gaps and procedural delays could leave many staff without the option to switch. The Council therefore requested at least a two-month extension so employees can make an informed choice.

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