Unified Pension Scheme (UPS) : Instant Pension Payouts After Voluntary Retirement

For the first time, the government has made a big change in pension rules for employees.
Now, under the Unified Pension Scheme (UPS), if an employee takes voluntary retirement (VRS), they will get pension benefits right away.
Earlier, employees had to wait many years after VRS to receive their pension.

This new rule will help those who cannot complete their service or are asked to leave early under VRS.

UPS Came After Opposition to NPS

The National Pension Scheme (NPS) was started in 2004 after ending the old pension system.
NPS was linked to the market, so pensions were not fixed and safe.
Employee groups opposed it and demanded the old pension back.

To answer these protests, the government brought UPS, which promises a guaranteed pension.
But since its start, only 1% of employees have joined it.
Many workers still call it useless like NPS and demand the old pension scheme.

Problem With VRS in UPS

Employees had one big issue with UPS.
Those who retired early under VRS had to wait till the age of 60 to get pension.
This waiting period created stress for many families.

Now, the new rule allows pension from the day of VRS.
This means no more long wait for employees who leave early.

Last Date to Choose UPS

UPS started from 1 April 2025.
At first, the last date to join was 30 June 2025, later extended to 30 September 2025.
Now, only a few days are left to opt for this scheme.

So far, only 1% of employees have selected it, even though the government has added new features.
Employees are still not sure if it gives them real benefits.
The success of this new change will be clear only in the future.

Key Features of UPS and VRS Rule

Feature	Old Rule	New Rule
Pension after VRS	Start at age 60	Start immediately
Launch date	April 2025	April 2025
Last date to opt	30 June 2025 (extended)	30 September 2025
Employees joined	Very low (1%)	Still low

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