The government’s Unified Pension Scheme (UPS), introduced to provide assured pensions for government employees, has seen a tepid response, with only 1.35 per cent of the workforce opting to switch from the existing National Pension System (NPS), as revealed in an exclusive Right to Information (RTI) response obtained by India Today.
According to data from the Pension Fund Regulatory and Development Authority (PFRDA), just 30,989 out of approximately 23 lakh employees enrolled in NPS have adopted the new scheme as of July 20. Separately, in a written reply to the Lok Sabha on July 28, the Finance Ministry informed that as of July 20, a total of 31,555 employees had opted for the scheme.
The remaining eligible staff seem either content with NPS’s flexibility and tax perks or are skeptical.
This cautious reception is what likely prompted the government to extend the deadline for opting into the UPS. Initially set for June 30, the deadline has been postponed to September 30, in hopes of increasing participation rates. Failure to switch within this timeframe will result in employees remaining with the NPS indefinitely.
The UPS was launched on April 1, 2025, offering a blend of features from both the terminated Old Pension Scheme (OPS) and the current NPS. It promises a minimum pension of Rs 10,000 for employees with at least ten years of service, and a guaranteed pension of 50% of the average basic pay from the previous 12 months, with inflation-linked adjustments. Despite its benefits, employees appear hesitant to embrace the new system.
SB Yadav, Secretary General of the Confederation of Central Government Employees & Workers, explained: “Employees comparatively prefer OPS; they are inclined towards that only. They want a non-contributory, defined, statutory pension plan.”
UPS was introduced, keeping in mind political considerations, aimed at countering opposition narratives and discontent among government employees in states where OPS was reinstated. By offering UPS, the government sought to present a pro-employee image and retain favour amid rising demands for OPS reinstatement.
Prof AK Bhagi, president of the Delhi University Teachers’ Association, voiced concerns: “The Government of India has not extended the option of the University Pension Scheme (UPS) to University of Delhi employees, citing its status as an autonomous body. Nor has it provided the option to switch to the Old Pension Scheme (OPS) in the event of an employee’s demise – a benefit available to Central Government employees.”
With key differences between OPS, NPS, and UPS, employees face difficult choices. While NPS offers flexibility and is reliant on market returns, OPS provides fixed benefits. UPS, meanwhile, aims to balance fiscal discipline with employee security, though its reception has been lukewarm so far. The scheme’s mixed reception highlights the complex considerations employees must weigh.
PFRDA, in response to India Today’s specific queries, clarified that month-wise and state-wise breakups in the number of employees who have opted for the UPS since the option to switch was notified are not currently maintained or available in their official records. Similarly, regarding officers from the All-India Services – including IAS, IPS, and IFS – the PFRDA stated that no such data is tracked or compiled separately at their end. As a result, only cumulative figures at the national level are presently provided, and more granular breakdowns as requested are not furnished in the regulator’s official responses.
