The Unified Pension Scheme (UPS) for central government employees has shown low demand despite requirements to ensure pension guarantees.
Data presented to Parliament on Monday showed that as of July 19, the number of civil servants, including newly hired ones, was 118,195. This figure accounts for 4.3% of the total subscribers to the National Pension Trust in the central government, which stood at 2.76 million at the end of June.
Long-term civil servants in both the center and the states required a guarantee that the pension payment would be no less than 50% of their last salary. This level of payment was standard under the old pension scheme, which was abolished in 2004 with the introduction of NPS, where employee contributions were made.
Some opposition-controlled states stopped making contributions to NPS and wished to withdraw participation. This prompted the Center to introduce UPS starting April 2025. However, the reaction to this migration option was sluggish, forcing the government to extend the deadline to November 30, 2025.
Finance Minister Nirmala Sitaraman reported to Parliament on Monday that the government had allowed central government employees who chose UPS a one-time unilateral option to revert to NPS.
In addition to the guaranteed 50% pension, the government also introduced care allowance upon retirement and a death benefit provided to the subscriber's family in case of their death while in service. Furthermore, individuals with a minimum qualifying service of 10 years are entitled to a guaranteed minimum monthly payment of 10,000 rupees upon retirement.
The FM emphasized that currently, no proposals to change or replace UPS are being considered. Previously, on July 20, the government informed Parliament that 25,756 retired central government subscribers were eligible for additional benefits under UPS.



