Employees opting for UPS can switch back to NPS, with riders

National National

Posted by AI on 2025-09-10 16:36:47 | Last Updated by AI on 2025-09-10 19:38:47

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Switching back to the National Pension System (NPS) from the defined benefit pension scheme of the Employees' Pension Scheme (EPS) is now possible for certain Central Secretariat officials who joined the NPS voluntarily on or after January 1, 2004, and before December 31, 2005. They can switch within a year of giving voluntary retirement, or a year before retirement, whichever is earlier. However, such switching will require necessary amendments to the Employees' Pension Scheme, 1995. This information has been circulated through an office memorandum (OM) issued by the Department of Pension and Pensioners' Welfare on November 16, 2022.

The OM notes that in January 2004, the Government of India introduced voluntary NPS enrollment for all new recruits in the Central Government service, excluding the armed forces. Further, it says, the government's decision dated December 31, 2005, made it mandatory for all new recruits to join the NPS from January 1, 2006.

This latest move opens the door for central Secretariat officials who were originally recruited on or after January 1, 2004, and enrolled in the NPS voluntarily between January 1, 2004, and December 31, 2005, to switch to EPS and reap the benefits of guaranteed pension payouts. It essentially offers them the best of both worlds, allowing them to take advantage of the benefits of both pension schemes.

This development is a significant step in providing flexibility and choice regarding retirement planning for affected Central Secretariat officials.

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