The Railway Board has clarified the rules regarding the switch from the National Pension System (NPS) to the Unified Pension Scheme (UPS). According to the official notification, employees who have already availed benefits or withdrawn a lump sum amount from NPS will not be eligible to move to the UPS. This decision brings clarity to the transition process for railway staff.
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Who cannot switch to the Unified Pension Scheme?
The Railway Board issued a clarification on 25 June 2026 stating that any employee who has already taken a benefit from the National Pension System or has withdrawn a lump sum amount is ineligible for the UPS. This means the door to the Unified Pension Scheme is closed for those who have already utilized their NPS funds. The guidelines were further detailed in RBE No. 48/2026 issued on 18 June 2026.
What are the key dates and deadlines for UPS?
The Unified Pension Scheme was introduced by the Ministry of Finance on 24 January 2025 and became operational from 1 April 2025. Eligible employees and those retired under NPS must exercise their option to choose UPS by 30 September 2025. Those who decide to stay with NPS after this deadline will not be allowed to switch to UPS later.
How does the UPS pension calculation work?
The UPS aims to provide stability similar to the Old Pension Scheme while keeping financial burdens controlled. The scheme includes the following benefits:
| Criteria | Benefit Detail |
|---|---|
| Minimum Pension | ₹10,000 per month for at least 10 years of service |
| Full Pension | 50% of average basic pay for 25 years of service |
| Inflation Adjustment | Pension adjustments through Dearness Relief (DR) |
| Exit Benefit | Lump sum payment provided at the time of retirement |
Frequently Asked Questions (FAQs)
What is the last date to opt for UPS for NPS employees?
The final date for eligible employees and those retired under NPS to choose the Unified Pension Scheme (UPS) is 30 September 2025.
Can a spouse exercise the UPS option if the employee died before choosing?
Yes, the Railway Board’s RBE No. 48/2026 discusses situations where the employee died before exercising the option, allowing the spouse to make the choice.