PFRDA notifies regulations to operationalise the Unified Pension Scheme from 1 April 2025
The Pension Fund Regulatory and Development Authority notified the PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025 by a gazette notification dated 19 March 2025, effective 1 April 2025.
Summary
The Pension Fund Regulatory and Development Authority (PFRDA) issued the PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025 through a gazette notification dated 19 March 2025. They follow the Government of India's notification of 24 January 2025 introducing the Unified Pension Scheme (UPS) as an option under the National Pension System (NPS) for Central Government employees, and come into effect on 1 April 2025. Three categories can enrol: employees in service on 1 April 2025 who are covered under NPS; new recruits joining on or after 1 April 2025; and NPS-covered employees who superannuated, retired voluntarily or retired under FR 56(j) on or before 31 March 2025 (or their legally wedded spouse if the subscriber has died). Forms are available online from 1 April 2025 on the Protean CRA website. Under UPS, the full assured payout is 50% of the average basic pay of the last 12 months before superannuation, after at least 25 years of qualifying service, with a minimum of ₹10,000 a month after 10 years; the government contributes 10% to the individual corpus and 8.5% to a pool corpus.
Key facts
- Gazette date
- 19 March 2025
- Regulations
- PFRDA (Operationalisation of the UPS under NPS) Regulations, 2025
- In force
- 1 April 2025
- Scheme notified
- 24 January 2025 (Government of India)
- Assured payout
- 50% of last 12 months' average basic pay, after 25 years
- Minimum payout
- ₹10,000/month after 10 years
- Contribution
- Employee 10%; Government 10% + 8.5% pool corpus
- Forms
- Protean CRA website, from 1 April 2025
Practice MCQs 4 questions
From which date did the PFRDA regulations operationalising the Unified Pension Scheme, notified in March 2025, come into effect?
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Correct answer: C — 1 April 2025
The PFRDA regulations, notified by gazette dated 19 March 2025, came into effect on 1 April 2025.
Under the Unified Pension Scheme, the full assured payout is what share of the average basic pay of the last 12 months before superannuation?
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Correct answer: B — 50%
The full assured payout is 50% of the 12-month average basic pay immediately before superannuation, payable after at least 25 years of qualifying service.
What is the minimum guaranteed monthly payout under the Unified Pension Scheme for a subscriber who superannuates after at least 10 years of qualifying service?
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Correct answer: A — ₹10,000
A minimum guaranteed payout of ₹10,000 a month applies when superannuation is after 10 or more years of qualifying service.
Consider the following statements about the Unified Pension Scheme (UPS): 1. Besides 10% to the employee's individual corpus, the government contributes an additional 8.5% to a pool corpus. 2. The family payout under UPS is 60% of the subscriber's payout. Which of the above is/are correct?
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Correct answer: C — Both 1 and 2
PFRDA's comparison gives UPS contributions as 10% (employee) + 10% (Government) + 8.5% (pool corpus), and family benefits as 60% of the subscriber's payout. Both statements are correct.