The Indian Government has extended the deadline for employees to move from the National Pension System (NPS) into the Unified Pension Scheme (UPS). Until this deadline was fixed, it was a relief for many central government employees who were somehow unable to complete the shifting process. With an extension of 60 days, employees now have sufficient time to properly decide and make the shift.
What Is the Unified Pension Scheme?
Unified Pension Scheme was introduced as a better and more secure system for market-linked NPS for retirement income for government employees. Under the UPS, employees will be entitled to receive a guaranteed pension that is calculated on the basis of their last drawn salary and years of service. The scheme intends to bring security features back into the old pension system while implementing its own transparency and accountability measures.
Extension of Deadline
Initially, the deadline was running out fast, instilling a sense of uncertainty about the completion of the process on the part of many employees. A need for more time was felt, and thus the government gave an extension of 60 days. So from this new extension date, eligible employees can consider switching into UPS, much to their relief as they can now check the terms properly, consult their departments, and get all the documentation ready. This extension has been put in place to make sure that not a single employee misses the opportunity due to some delay in administration or due to lack of information regarding the process.
Who Can Opt for the Switch?
The UPS is generally only applied to central and state government employees who joined after the coming into force of NPS but can now be migrated under the amended pension structure. Employees wishing to migrate to UPS will have to put in their application through their respective department before the deadline is extended. Upon being approved, their existing NPS accounts will be duly adjusted, thus enabling a smooth transition.
Conclusion
The government extending the deadline by 60 days to shift from NPS to UPS is a beneficial move for thousands of employees. It gives them more time to understand the benefits of the Unified Pension Scheme and complete the switching procedure in a rush. Employees should benefit from the extension, evaluate their financial needs in the long run, and make an informed choice prior to the final day.
