Just 1.35% of govt employees enrolled in NPS have opted for UPS: RTI data

The UPS (UPS) pensions, provided to provide guaranteed pensions for government employees, witnessed a lukewarm response, with only 1.35 percent of the workforce choosing a shift from the current national pension system (NPS), as shown in an exclusive response to the information (RTI) obtained by India today.

According to the data from the Petroda Fund and Development of the Pension Fund (PFRDA), only 30,989 out of about 23 NPS registered employees have adopted the new scheme as of July 20, in a written reaction to Luke Sebha on July 28, the Ministry of Finance informed that as of July 20, a total of 315555555555.

The remaining qualified employees seem to be either satisfied with NPS flexibility and tax privileges or skeptical.

This cautious reception is what probably prompted the government to extend the deadline for choice in UPS. Initially, the deadline was determined to September 30, hoping to increase participation rates. Failure to switch during this time frame will lead to NPS employees indefinitely.

UPS was launched on April 1, 2025, as it provided a mixture of features from both the outgoing old pension scheme (OPS) and the current NPS. It is a minimum pension of 10,000 rupees for employees who have at least ten years of service, and a 50 % guaranteed pension of the average basic wage from the previous 12 months, with adjustments related to inflation. Despite its benefits, the employees seem to be reluctant to embrace the new system.

“Employees prefer relatively over operations, they only tend to do so. They want an unspecified retirement pensions plan,” said SB Yadav, Secretary -General of the Personnel and Workers Union in the central government.

UPS, taking into account political considerations aimed at facing opposition accounts and discontent among government employees in the states where OPS was repeated. By submitting UPS, the government sought to present a pro -employee image and keep the good amid increasing demands to restart OPS.

Professor Ak Bhagi, president of the Teachers Association at the University of Delhi, expressed his concerns: “The government of India has not extended the option of the university pension plan (UPS) to the employees of the University of Delhi, citing its status as an independent body. The option of switching to the old retirement plan (OPS) did not provide the Dimuz employee event – a feature available to employees.”

With the main differences between OPS, NPS and UPS, employees face difficult options. Although NPS provides flexibility and depends on market revenues, OPS provides fixed benefits. At the same time, UPS aims to balance financial discipline with employee security, although its reception has been lukewarm until now. The mixed reception in the plan highlights the complex considerations that employees must weigh.

PFRDA, in response to the inquiries specified today in India, explained that wise disintegration operations in the month and the state in the number of employees who chose UPS where the switching option was notified or is currently available in their official records. Likewise, with regard to employees from India’s services-including IAS, IPS and IFS- PFRDA stated that such data is not tracked or collected separately at the end. As a result, cumulative numbers are provided only at the national level at the present time, and no more granular breakdowns are provided in demand in the official responses of the regulator.