Need new measures to make Unified Pension Scheme more attractive, says PFRDA chief

New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) needs to bring in fresh measures to raise enrolments under the government’s Unified Pension Scheme (UPS), chairman S. Ramann said at an industry event here on Monday.

While the government has extended the deadline to 30 September from 30 June, the uptake under UPS remains modest compared to that for the Atal Pension Yojana (APY), which crossed 81 million subscribers.

As on 20 July, only 31,555 central government employees had opted to switch from the National Pension System (NPS) to UPS, according to finance ministry data detailed in Parliament.

The chairman did not specify the nature of the measures that could be taken and whether the enrolment date would be further extended.

Ramann noted the banking fraternity’s support to the pension sector and said the Atal Pension Yojana, now in its 10th year, had achieved the fastest-ever 5 million subscriber addition in a single fiscal year, with 46% enrolments from the youth aged 18–25 years.

He said the Atal Pension Yojana, with over ₹48,000 crore of assets under management (AUM) and 9.12% CAGR (compound annual growth rate) since inception, is a robust and sustainable pension product. The chairman also urged banks, particularly in the private sector, to enhance efforts, improve persistency and drive financial literacy to achieve pension saturation.

The Atal scheme has been implemented across the country, covering all states and union territories. Gross enrolments under the scheme crossed 81.1 million as of 21 August, of which over 11.7 million new subscribers were enrolled in fiscal year 2025 (FY25). The scheme is rapidly gaining popularity among the female population and youth. In FY25, of the total enrolments, 55% were women.

India’s pension policy has shifted from guaranteed to market-linked, and now towards a hybrid model. The Old Pension Scheme (OPS) was replaced by the NPS for new government staff in 2004, moving to contributory, market-driven returns. In 2015, the Atal Pension Yojana was launched for informal workers. In its latest move, in April this year, the government introduced the UPS, restoring an assured benefit.

With the Atal scheme emerging as a trusted retirement solution for millions, the PFRDA reaffirmed its commitment to work closely with banks and post offices to ensure every eligible citizen gets covered, securing a dignified future for all, the regulator said.