The federal government’s Unified Pension Scheme (UPS), launched to supply assured pensions for presidency staff, has seen a tepid response, with just one.35 per cent of the workforce opting to modify from the present Nationwide Pension System (NPS), as revealed in an unique Proper to Info (RTI) response obtained by India As we speak.
In line with knowledge from the Pension Fund Regulatory and Growth Authority (PFRDA), simply 30,989 out of roughly 23 lakh staff enrolled in NPS have adopted the brand new scheme as of July 20. Individually, in a written reply to the Lok Sabha on July 28, the Finance Ministry knowledgeable that as of July 20, a complete of 31,555 staff had opted for the scheme.
The remaining eligible workers appear both content material with NPS’s flexibility and tax perks or are skeptical.
This cautious reception is what seemingly prompted the federal government to increase the deadline for opting into the UPS. Initially set for June 30, the deadline has been postponed to September 30, in hopes of accelerating participation charges. Failure to modify inside this timeframe will lead to staff remaining with the NPS indefinitely.
The UPS was launched on April 1, 2025, providing a mix of options from each the terminated Outdated Pension Scheme (OPS) and the present NPS. It guarantees a minimal pension of Rs 10,000 for workers with at the very least ten years of service, and a assured pension of fifty% of the common fundamental pay from the earlier 12 months, with inflation-linked changes. Regardless of its advantages, staff seem hesitant to embrace the brand new system.
SB Yadav, Secretary Basic of the Confederation of Central Authorities Staff & Employees, defined: “Staff comparatively choose OPS; they’re inclined in the direction of that solely. They need a non-contributory, outlined, statutory pension plan.”
UPS was launched, maintaining in thoughts political issues, geared toward countering opposition narratives and discontent amongst authorities staff in states the place OPS was reinstated. By providing UPS, the federal government sought to current a pro-employee picture and retain favour amid rising calls for for OPS reinstatement.
Prof AK Bhagi, president of the Delhi College Academics’ Affiliation, voiced considerations: “The Authorities of India has not prolonged the choice of the College Pension Scheme (UPS) to College of Delhi staff, citing its standing as an autonomous physique. Nor has it supplied the choice to modify to the Outdated Pension Scheme (OPS) within the occasion of an worker’s demise – a profit accessible to Central Authorities staff.”
With key variations between OPS, NPS, and UPS, staff face tough decisions. Whereas NPS presents flexibility and is reliant on market returns, OPS supplies fastened advantages. UPS, in the meantime, goals to stability fiscal self-discipline with worker safety, although its reception has been lukewarm to this point. The scheme’s combined reception highlights the complicated issues staff should weigh.
PFRDA, in response to India As we speak’s particular queries, clarified that month-wise and state-wise breakups within the variety of staff who’ve opted for the UPS because the choice to modify was notified will not be at the moment maintained or accessible of their official data. Equally, concerning officers from the All-India Companies – together with IAS, IPS, and IFS – the PFRDA said that no such knowledge is tracked or compiled individually at their finish. In consequence, solely cumulative figures on the nationwide stage are presently supplied, and extra granular breakdowns as requested will not be furnished within the regulator’s official responses.