Importantly, those who change their mind later are not locked in forever — they can switch back to NPS, one year before retirement or three months before opting for voluntary retirement, it said.
The rules also define how contributions will work under UPS, both from the employee and the government, so that deductions and matching deposits remain transparent.
In case there is any delay by the authorities in registering someone under UPS or crediting their contribution on time, the employee will be compensated, ensuring they don’t lose out because of administrative lapses, the statement said.
Another key area is protection for employees and their families in unexpected situations.
If a government servant dies in service or becomes disabled, the family will have the choice to claim benefits either under the traditional CCS (Pension) Rules or under UPS regulations, whichever is more beneficial,” it said.
The rules also explain what benefits will be paid in different retirement situations — whether it is normal retirement, voluntary retirement, premature retirement, retirement due to ill health, resignation, or even absorption into a PSU or autonomous body, the statement said.
Each of these scenarios has been clearly covered so that there is no ambiguity about entitlements.
The officials said the notification of these rules provides a clear framework for implementing the UPS and will help employees make an informed choice between the two pension systems.
All India NPS Employees Federation national president Manjeet Singh Patel, said new FAQs will go a long way in addressing employees’ concerns. “It is a very good initiative by the Central government. FAQs will prove to be beneficial for all sections of employees and clear any ambiguity that they may have about the UPS or NPS provisions,” he added.