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In a major relief for central government retirees, the Pension Fund Regulatory and Development Authority (PFRDA) has introduced the Unified Pension Scheme (UPS) effective from April 1, 2025. This new scheme is designed to enhance the post-retirement income of those who retired under the National Pension System (NPS) on or before March 31, 2025, along with benefits for their eligible spouses.

What Is the Unified Pension Scheme (UPS)?

The Unified Pension Scheme is an optional retirement benefit plan that supplements the existing NPS annuity. It is targeted at central government employees who have rendered at least 10 years of service and are already receiving NPS-based pensions. The scheme aims to improve financial stability in retirement through additional monetary benefits.

Key Benefits Under UPS

The scheme offers three major financial benefits over and above the regular NPS annuity:

1. Lump Sum Payment:
   Retirees will receive 10% of their last drawn basic pay plus Dearness Allowance (DA) for every completed 6 months of service.

2. Monthly Pension Top-Up:
   If the NPS annuity is lower than the UPS benefit, a monthly top-up will be provided to bridge the gap.

3. Interest on Arrears:
   Any pending arrears will accrue interest at Public Provident Fund (PPF) rates.

Who Can Apply and How?

To avail the benefits under UPS:

• Eligible retirees or their surviving spouses must fill out the UPS application form and submit it to their respective Drawing and Disbursing Officer (DDO).

• Alternatively, applications can be submitted online via the official website:
  👉 www.npscra.nsdl.co.in/ups.php

📅 Deadline to apply: June 30, 2025
No claims will be accepted after this date.

Final Word

With rising living costs and longer life expectancy, the Unified Pension Scheme comes as a timely financial cushion for government retirees. It not only boosts regular income but also rewards long service with structured payouts—making retirement more secure and stress-free.