The government’s unified pension plan (UPS), introduced to provide guaranteed pensions to government employees, experienced a lukewarm response, with only 1.35% of the workforce, choosing to go from the existing national retirement (NPS), as revealed by an exclusive right to information (RTI) obtained by India today.
According to data from the Fund Regulatory and Development Authority pension (PFRDA), only 30,989 out of approximately 23 LAKH employees scored at the NPS adopted the new program on July 20. Separately, in a written response to LOK SABHA on July 28, the Ministry of Finance informed that on July 20, a total of 31,555 employees had opted for the diagram.
The remaining eligible staff seem to be the content of flexibility and tax advantages of NPS or is skeptical.
This cautious reception is what has probably prompted the government to extend the deadline to opt for UPS. Initially scheduled for June 30, the deadline has been postponed until September 30, in the hope of increasing the participation rates. The fact of not changing within this period will indefinitely lead to employees remain with the NPS.
The UPS was launched on April 1, 2025, offering a mixture of features from the old pension plan (OPS) finished and current NPs. He promises a minimum RS 10,000 pension for employees with at least ten years of service and a guaranteed pension of 50% of the average basic salary of the previous 12 months, with adjustments related to inflation. Despite its advantages, employees seem to hesitate to adopt the new system.
SB Yadav, secretary general of the Confederation of Employees and Workers of the Central Government, explained: “Employees prefer comparatively the OPs; they are inclined to this. They want a non -contributory, defined and statutory pension plan.”
UPS was introduced, keeping in mind political considerations, aimed at countering opposition accounts and ignoring among government employees in states where OPS have been reintegrated. By offering UPS, the government has sought to present a pro-employee image and to maintain favor in the midst of increasing requests for reinstateing operations.
Professor Ak Bhagi, president of the Delhi University Teachers’ Association, expressed his concerns: “The government of India has not extended the option of the university pension plan (UPS) to employees of the University of Delhi, citing its status as an autonomous organization. None of the employees, he did not offer an advantage of employees of the central government.”
With key differences between OPs, NPs and UPS, employees are faced with difficult choices. While NPS offers flexibility and depends on market yields, OPS offers fixed advantages. UPS, on the other hand, aims to balance the tax discipline with the safety of employees, although its reception has been lukewarm so far. The mixed reception of the program highlights the complex considerations that employees must weigh.
The PFRDA, in response to India’s specific requests today, said that breaks per month and by the State in the number of employees who have opted for UPS, because the change option has been informed is not currently maintained or available in their official files. Likewise, with regard to officers of the services of all India – including the IAS, the IP and the IF – the PFRDA said that no data was followed or compiled separately at their end. Consequently, only the cumulative figures at the national level are currently provided, and more granular failures as requested are not provided in the official responses of the regulator.
