Guaranteed pension under UPS may dent NPS popularity among government employees

THE UNIFIED PENSION SCHEME (UPS), launched on April 1, 2025, introduces significant changes to India’s pension framework, particularly impacting the National Pension System (NPS). Analysts and experts are actively evaluating how this new scheme will reshape the retirement planning landscape for government employees.​

“UPS is being introduced as an alternative to NPS for Central government employees, offering a guaranteed 50% pension of the last drawn basic salary and ongoing inflation indexation through dearness relief,” says Sriram Iyer, CEO of HDFC Pension, adding that he anticipates that most employees will choose this option. This extension is set to benefit approximately 2.7 million government employees.