New Delhi: Central Government employees under Unified Pension Scheme (UPS) can now to shift to the National Pension System (NPS), as per an Office Memorandum by Finance Ministry. This facility is however a one-time, one-way switch option, means you can’t keep switching back.
“It has been decided that a one-time, one-way switch facility from UPS to NPS shall be made available to all Central Government employees who have opted for UPS. This switch facility may be exercised by UPS optees any time not later than one year prior to the date of superannuation or three months prior to the deemed date of retirement in case of voluntary retirement, as applicable,” Finance Ministry said in an Office Memorandum dated August 25.
NPS UPS Switch: Who Can’t Avail This Facility
The switch facility will not be allowed in case of removal, dismissal or compulsory retirement as a penalty or for cases where disciplinary proceedings are ongoing or contemplated.
NPS UPS Switch: Cases Of Resignation
Similar provisions will be made for resignation and cases of Rule 56J, with minor modifications as necessary. If switch facility not exercised as per aforesaid timelines, the employee shall continue under UPS by default.
(Also Read: DDA Premium Housing Auction For Ready Flats Opens, Check Deadline)
NPS UPS Switch: What Happens To Govt’s 4% Differential Contribution?
Once the switch facility is availed, the provisions of the PFRDA (Exit & Withdrawal under NPS) Regulations, 2015 shall apply. The concerned employee shall cease to be eligible for assured payouts and UPS benefits. The Government’s differential contribution of 4 percent at default investment pattern will be worked out and shall be credited to the individual’s NPS corpus at the time of exit.