New Delhi: The government on Tuesday extended the deadline to switch from the National Pension System (NPS) to the Unified Pension Scheme (UPS) till November 30, against the earlier date of September 30.
The deadline has been extended for eligible employees, past retirees, and legally wedded spouses of deceased retirees to exercise their option to join the UPS by two months, according to a notification by the Department of Financial Services (DFS).
In the official communication to the Pension Fund Regulatory and Development Authority (PFRDA), the DFS said the decision was taken after receiving multiple requests from stakeholders seeking more time in view of recent changes announced under the scheme.
The Finance Ministry has directed the PFRDA to make necessary changes in the Central Recordkeeping Agency (CRA) systems and issue a circular to implement the decision.
Earlier, the Finance Ministry had urged all Central government employees and past retirees under the NPS who wish to switch to the UPS to exercise their option well ahead of the September 30 deadline to avoid being caught up in a last-minute rush.
“All eligible employees are urged to exercise their option well before the deadline to avoid any last-minute difficulties and to ensure the timely processing of their requests. Employees who choose to remain in the NPS cannot opt for the UPS after this date,” a Finance Ministry statement had said.
Eligible employees under the UPS can switch to the NPS only once and cannot switch back to the UPS. The switch must be exercised at least one year before superannuation or three months before voluntary retirement, whichever is earlier.
The switch facility will not be allowed in cases of removal, dismissal, or compulsory retirement as a penalty, or where disciplinary proceedings are ongoing or contemplated.
Those who do not opt for the switch within the stipulated time will continue under the UPS by default.
This initiative aims to provide Central government employees with an informed choice in planning their post-retirement financial security. By opting for the UPS, the employees retain their choice to switch to the NPS at a later date.
(IANS)
