The Irrevocable Choice
Switching from NPS to UPS is a one-time, irrevocable decision. Once you exercise the option to join UPS, you cannot switch back to NPS or claim any subsequent policy changes, financial benefits, or parity with future retirees. This makes it a decision that requires careful analysis of your individual situation.
Eligibility to Opt for UPS
You can opt for UPS if you are:
- A Central Government employee covered under NPS, in service as on 31 March 2025
- A new recruit joining Central Government service on or after 1 April 2025
- An employee who superannuated/retired on or after 1 January 2004 and before 1 April 2025 (past retirees with specific conditions)
- A legally wedded spouse of a deceased subscriber who was eligible but passed away before exercising the option
Deadlines for Exercising the Option
| Category | Deadline |
|---|---|
| Existing employees in service on 31 March 2025 | Within 3 months of 1 April 2025 (by 30 June 2025, or as extended) |
| Past retirees (superannuated before 1 April 2025) | Within 3 months of 1 April 2025 (by 30 June 2025, or as extended) |
| Eligible spouses of deceased subscribers | Within 3 months of 1 April 2025 (or as extended) |
| New employees joining on/after 1 April 2025 | Within 30 days of joining service (or as extended) |
Forms to Use
The following forms are available at www.npscra.nsdl.co.in/ups.php:
- Form B1: For employees who are currently in service
- Form B2: For employees who superannuated on/after 1 April 2025
- Form B3: For past retirees (superannuated before 1 April 2025)
- Form B4: For employees retired under FR 56(j)
- Form B5: For voluntary retirees
- Form B6: For eligible spouses of deceased subscribers
Step-by-Step Process
- Calculate your benefit: Use the UPS Calculator to estimate your pension under UPS and compare with your NPS corpus projection
- Decide on final withdrawal: Decide whether you want to make a final withdrawal (up to 60% of corpus) — note this permanently reduces your monthly pension
- Download the appropriate form from the PFRDA/NPS CRA website
- Submit to your Head of Office (DDO): Submit the completed form along with required documents before the deadline
- PRAN continues: Your existing PRAN number is retained — no new PRAN is issued for UPS
- Corpus transfer: Your accumulated NPS corpus is transferred to the UPS individual corpus under the same PRAN
- Receive UPS Payout Order (UPO): The PAO authorises a UPO detailing your benefits, which is sent to NPS Trust via CRA
Key Considerations Before Switching
- Compare pension amounts: Use the calculator to see if your projected NPS annuity exceeds UPS assured payout
- Consider your health: Family pension (60%) under UPS may be valuable if you have dependents
- Minimum guarantee benefit: If your corpus has underperformed, UPS protects you with the ₹10,000 floor
- Remaining service: Those closer to retirement may find UPS more beneficial as the guaranteed benefit is locked in
- Investment performance: Check if your IC is close to or above BC — a significantly higher IC under NPS may make NPS more favourable