For retired employees of the central government receiving pensions under the National Pension System (NPS), there is exciting news. Starting April 1, 2025, a new initiative called the Unified Pension Scheme (UPS) will be introduced. This scheme aims to provide additional pension benefits to employees and their eligible spouses who retire under NPS by March 31, 2025. The primary goal of this scheme is to enhance financial security post-retirement. UPS will offer various features, including lump-sum payments, monthly pension top-ups, and interest benefits.

The UPS is an optional pension scheme launched by the central government, effective from April 1, 2025. It is specifically designed for employees who have retired under NPS and have completed at least 10 years of service. The scheme increases the pension amount to ensure that retirees do not face financial difficulties after retirement. It complements the existing annuity system while providing additional security.

The UPS scheme offers three main benefits:

• A lump-sum payment – One-tenth of the last salary and dearness allowance (DA) will be provided for every six months of service.


• Monthly top-up amount – An additional sum will be provided each month to bridge the gap between the annuity received from NPS and the UPS pension.


• Interest on dues – Any outstanding dues will earn interest according to the Public Provident Fund (PPF) rates.

Claiming UPS benefits is a straightforward process. Retiring employees or their spouses can submit the designated form for UPS to their respective Drawing and Disbursing Office (DDO). For those wishing to apply online, the form can be filled out at www.npscra.nsdl.co.in/ups.php. The final date to claim benefits is June 30, 2025, after which no claims will be accepted.