Unified Pension Scheme (UPS) Issues – Meeting with Secretary, Department of Pension & Pensioners’ Welfare

Unified Pension Scheme (UPS) Issues – Meeting with Secretary, Department of Pension & Pensioners’ Welfare. On 05 August 2025, a meeting was held between the Department of Pension & Pensioners’ Welfare (DoP&PW) and the Government Employees National Confederation (GENC). The GENC delegation raised several key concerns regarding the new Unified Pension Scheme (UPS).

Minutes of the Meeting with Secretary, Department of Pension & Pensioners’ Welfare

Date: 05 August 2025
Venue: Office of Secretary, DoP&PW, Lok Nayak Bhawan, New Delhi

Participants:

The meeting was chaired by Shri V. Srinivas, Secretary, Department of Pension & Pensioners’ Welfare (DoP&PW), Government of India. Also present was Shri Dhrubajyoti Sengupta, Joint Secretary (Pension), DoP&PW.

The delegation of Government Employees National Confederation (GENC) was led by Shri Mukesh Singh, Secretary General, GENC. He was accompanied by:

• Shri Rabindra Kumar Mishra, – General Secretary, Bharatiya Pratiraksha Mazdoor Sangh
• Shri Anant Kumar Pal, – Secretary General, Bharatiya Postal Employees Federation
• Shri Virendra Kumar Sharma, – Working President, Delhi State BMS

Discussion Points & Outcome:

1. Recovery of Employee Contribution under Unified Pension Scheme (UPS):

The GENC delegation pointed out that under the UPS, employees are contributing 10% of Basic Pay plus DA, similar to NPS. However, upon retirement, there is no provision for returning this amount to the employee or adjusting it against pension, leading to financial disadvantage and resentment.

Response:

The Secretary clarified that the Unified Pension Scheme is a defined contributory and guaranteed pension system. Since the scheme provides a fixed pension benefit post-retirement, the contribution made by the employee is factored into the overall scheme structure. Hence, refund of contribution is not viable or permissible under the defined framework of UPS.

GENC expressed its commitment to continue the strategy (from dialogue to struggle) till the contribution of the employee is returned to him.

2. Discrepancy in Qualifying Service for Full Pension:

GENC raised the concern that the UPS mandates a minimum qualifying service of 25 years to receive a pension equal to 50% of the average basic pay over the last 12 months. In OPS, the pension was calculated based on the last pay drawn or the average of the last 10 months—whichever was more beneficial. This disparity affects employees adversely, especially those with shorter service tenures.

Response:

The Secretary acknowledged the concern and stated that the department would re-examine these provisions in the UPS.

3. Denial of Pension Benefits on Voluntary Retirement under UPS:

GENC pointed out that under the current UPS guidelines, pension is only payable at the age of 60, even for those who opt for Voluntary Retirement before the normal date of superannuation.. This leads to a financially insecure situation for retiring employees who must wait for years without pension.

Response:

The Secretary expressed a sympathetic view and recognized the practical hardship this delay imposes. He assured that the department will consider the matter and issue a suitable clarification or resolution.

4. Final Option to Choose between NPS and UPS at Retirement:

GENC strongly advocated that employees should be given a final opportunity to exercise their choice between the National Pension System (NPS) and the Unified Pension Scheme (UPS) at the time of retirement, as this would enable them to make an informed decision based on actual service conditions and benefits.

Response:

The Secretary acknowledged the merit in this suggestion and stated that the department may consider allowing a final option to employees one year before superannuation.

5. Conversion to OPS for Ex-Trade Apprentices in Ordnance Factories:

GENC highlighted the case of approximately 200 ex-trade apprentices of Ordnance Factories who had been recruited against vacancies sanctioned before 22.12.2003 but were placed under NPS due to the delay in appointment, which was beyond their control. It is relevant to note that in comparable cases, the competent authority had sanctioned posts to be filled through Direct Recruitment as per the applicable recruitment rules. Accordingly, before 22.12.2003, various Ordnance Factories notified these vacancies to the Employment Exchange — earmarking some of the sanctioned posts for physically handicapped persons only and the remaining posts for ex-trade apprentices of Ordnance Factories as per departmental instruction/practice. As a result, physically handicapped employees, who joined the Ordnance Factories in late 2004, have since been converted from NPS to OPS, whereas ex-trade apprentices, who were appointed earlier than these physically handicapped employees under the same recruitment process, continue to remain under NPS. This disparity is unjustified and contrary to the principle of equal treatment for similarly placed employees.

Response:

The Joint Secretary (Pension) informed that DoP&PW has already issued necessary instructions clarifying that in such cases, the authority competent to appoint is also competent to decide eligibility under OPS. In this particular case, the matter now lies with the Department of Defence Production (DDP), Ministry of Defence, to implement accordingly.

6. One-Time Opportunity for OPS Option to Left-Out Employees:

GENC urged the department to provide one more opportunity to those eligible employees who could not exercise their option for OPS due to technical or procedural reasons.

Response:

The Secretary assured that such proposals, if forwarded by the concerned Ministries/Departments with due justification and a certificate confirming that no other similar cases are pending, will be considered sympathetically by DoP&PW.

Conclusion:

The meeting was held in a cordial and constructive atmosphere. The Secretary and Joint Secretary of DoP&PW gave a patient hearing to all the issues raised by the GENC delegation and provided reasoned and reassuring responses. Notably, the Secretary assured that the Department would aim to issue decisions on Points 2, 3, and 4 within a fortnight.

GENC expressed its appreciation and gratitude to the Secretary and the Ministry for the positive approach and openness to addressing the genuine concerns of Central Government employees and pensioners.

Sd/-
(MUKESH SINGH)
Secretary General, GENC