Old Pension Scheme benefits in UPS: Central Govt employees can claim OPS benefits in Unified Pension Scheme for these cases
Even Central Government employees under NPS can avail OPS benefits
How new circular helps central government employees
What is Unified Pension Scheme (UPS)?
The Ministry of Personnel, Public Grievances & Pensions has issued an office memorandum on providing Old Pension Scheme (OPS) benefits to the Cental Government employees who have subscribed for Unified Pension Scheme (UPS). The Department of Pension and Pensioners' Welfare (DoPPW) has issued instructions that those who opt for UPS will be entitled to benefits in the OPS under the CCS (Pension) Rules, 2021, or the CCS (Extraordinary Pension) Rule,s 2023. However, OPS benefits will be available under the specified conditions only.The instructions have been issued by the DoPPW on June 18, 2025.According to the instructions issued, central government employees who opted for Unified Pension Scheme (UPS) will get benefits under the Old Pension Scheme (OPS) if the employee dies while in government service or if discharged due to invalidation or disablement.The press release stated that 'The DoPPW issued Office Memorandum on 18 June 2025, stating has issued instructions extending the option to Central Government civil employees covered under Unified Pension Scheme (UPS) for availing benefits of the Old Pension Scheme under the CCS(Pension) Rules, 2021 or the CCS(Extraordinary Pension ) Rules, 2023 in the event of death of Government employees or his discharge from service on account of invalidation or disablement.'The DoPPW has issued a circular last year in October, 2024 clarifying that central government employees who are covered under National Pension System (NPS) can also avail the OPS benefits in certain situations.The government circular states that "Rule 10 of the Central Civil Services (Implementation of National Pension System) Rules, 2021, allows every central government employee covered under the National Pension System to choose between benefits from the National Pension System or Old Pension Scheme in the event of the death of a government servant during service or their discharge on the grounds of invalidation or disablement."According to experts, the circular dated October 25, 2024, asks the central government employees to formally opt for either NPS or OPS in case of death during service, invalidation, or disability retirement. The directive clarifies that Rule 10 applies only to employees who joined the central government service on or after January 1, 2004, and are covered under NPS. This provision enables them to choose pension benefits under NPS or OPS in specific circumstances, ensuring financial security for their families in case of unforeseen events.Also Read: Central government employees, in NPS, can choose OPS under certain conditions; Check eligibility, forms to submit The DoPPW has extended the facility of availing OPS benefits for central government employees covered under UPS as well. Hence, central government employees who have opted for the UPS have an option to avail the benefits under OPS in case of specified situations.The Unified Pension Scheme (UPS) is introduced by the Central Government as an option under the National Pension System (NPS) for Central Government employees with effect from 1st April 2025. The UPS provides assured pay-out based on the prescribed conditions.Yes, an existing Central Government employee in service as of 1 April 2025, who are covered under National Pension System (NPS) is eligible to opt for UPS.Yes, a newly recruited Central Government employees joining service on or after 1 April 2025 is eligible to opt for UPS.
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