On 19th March 2025, the Pension Fund Regulatory and Development Authority (PFRDA) issued the PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025, via a gazette notification. This regulatory update marks a significant milestone in the implementation of the Unified Pension Scheme (UPS) for central government employees covered under the National Pension System (NPS). The regulations will come into effect on 1st April 2025, with important changes affecting the enrolment and claims processes for various categories of employees.
The backdrop of these regulations follows the Government of India’s notification dated 24th January 2025, which laid the groundwork for implementing the UPS for central government employees who are currently covered under the NPS. The UPS, as per the latest developments, is designed to streamline the pension system and ensure that both existing employees and new recruits are covered under a unified pension structure.
The PFRDA regulations introduced on 19th March 2025 clarify the categories of central government employees eligible for the UPS and provide clear guidelines for their enrolment. Three specific categories of central government employees are targeted under these regulations:
Existing Central Government Employees Covered under NPS: This category includes employees who are already in service as of 1st April 2025 and are presently covered under the National Pension System.
New Recruits in Central Government Services: Any new employee who joins the central government services on or after 1st April 2025 will be enrolled under the UPS as per these regulations.
Retired or Superannuated Employees: Central government employees who were covered under NPS but have either superannuated, voluntarily retired, or retired under Fundamental Rules 56(j) on or before 31st March 2025, are eligible to opt for the UPS. Additionally, the legally wedded spouse of any subscriber who has superannuated or passed away prior to opting for the UPS is also eligible.
The regulations are comprehensive, covering the enrolment process for all three categories of employees, ensuring that they are well integrated into the newly operationalized UPS. The guidelines specify that both the enrolment and claim forms for employees in these categories will be available online via the Protean CRA website. This digital platform will facilitate easy access to the necessary forms for employees wishing to enroll in the UPS or submit claims. In addition, employees have the option to submit their forms physically, providing flexibility for those who may face technical challenges or prefer offline procedures.
These regulations represent a critical step toward simplifying the pension system and providing clearer and more efficient processes for government employees. By ensuring that all categories of employees are included in the UPS, the PFRDA aims to streamline pension benefits and improve transparency in the disbursement process. Furthermore, the online availability of forms makes it more accessible for employees to complete the necessary procedures, reducing paperwork and processing time.
The operationalization of the UPS under the new regulations also underscores the government’s commitment to modernizing the pension structure and ensuring that all employees, whether current or retired, have a clear and comprehensive path to their pension entitlements. With the regulations coming into effect on 1st April 2025, both existing employees and retirees need to familiarize themselves with the updated enrolment process to ensure a smooth transition to the UPS.
In conclusion, the PFRDA’s issuance of the regulations on 19th March 2025 and the Government of India’s notification of the UPS for central government employees reflect an important evolution in the country’s pension landscape. These regulations promise a more unified and accessible system, offering central government employees and retirees an opportunity to benefit from a streamlined and transparent pension system under the NPS framework.
