UPS to NPS: One-Time Switch for Central Employees
Why in the news
The Finance Ministry opened an irreversible exit route from the new UPS for Central staff.
UPS vs NPS
| Point | UPS | NPS |
|---|---|---|
| Payout | Assured, with minimum guaranteed pension (rate to be notified) | Depends on market returns |
| Basis | Blend of old defined-benefit and NPS | Defined contribution |
| Start | 1 April 2025 | 2004 |
| Coverage | Central government employees | Government staff except armed forces, later all citizens |
| Regulator | Within NPS | PFRDA |
Background
- UPS answers demands for security without a full return to the Old Pension Scheme (OPS).
Exam angle
- Switch: one-time, one-way.
- Regulator: PFRDA.