Unified Pension Scheme attracted just 4% of NPS subscribers: Government

Despite strong demands for assured pensions, the Unified Pension Scheme (UPS) has seen limited adoption among central government employees. Government data tabled in Parliament on Monday showed that 1,18,195 employees had enrolled in the scheme as of July 19, including recent recruits. This represents 4.3% of the 27.6 lakh central government subscribers under the National Pension System (NPS) as of the end of June.


For long govt employees, at the Centre as well as in states, were demanding an assurance that the pension payout be at least 50% of their last salary — something that is the norm under the old pension scheme, which was discontinued in 2004 when NPS, which has contributions from the employee, kicked in.


Several opposition-governed states stopped contributing to NPS and wanted to opt out, prompting the Centre to put in place UPS from April 2025. But the response to the migration option remained tepid and forced it to extend the date up to Nov 30, 2025. “…govt allowed central govt employees, who opted for UPS, one-time one-way switch facility to revert to NPS,” finance minister Nirmala Sitharaman told Parliament Monday.

Along with assured 50% pension, govt also introduced retirement gratuity and death gratuity with pension benefit available to the family upon the death of the subscriber during service.

Besides, those with minimum qualifying service of 10 years, are eligible to assured minimum monthly payout of Rs 10,000 on retirement.

“...to date, there is no proposal under consideration to...make any changes or replace UPS,” FM said.

In response to another question on July 20, govt had told Parliament that 25,756 retired central govt subscribers were eligible to receive additional benefits under UPS.

(With inputs from TOI)