Official Scenarios from the Gazette
The UPS Gazette Notification (GN) dated 24 January 2025 includes seven illustrative scenarios showing exactly how the assured payout is calculated under different circumstances. All examples use:
- 12-month average basic pay (P) = ₹45,000
- DA = 53%
- Monthly emoluments = ₹68,850
- Per 6-month period lump sum = ₹6,885
Scenario 1: Full Service, IC = BC
Conditions: 25 years service, IC = BC = ₹50,00,000
- Base = (₹45,000/2) × (300/300) = ₹22,500
- IC/BC ratio = 1.0
- Monthly Payout: ₹22,500 + DR
- Lump Sum: 50 × ₹6,885 = ₹3,44,250
- Family Payout: ₹13,500 + DR
Scenario 2: 15 Years Service, IC = BC
Conditions: 15 years service, IC = BC = ₹30,00,000
- Base = ₹22,500 × (180/300) = ₹13,500
- IC/BC ratio = 1.0
- Monthly Payout: ₹13,500 + DR
- Lump Sum: 30 × ₹6,885 = ₹2,06,550
- Family Payout: ₹8,100 + DR
Scenario 3: 10 Years Service — Minimum Guarantee
Conditions: 10 years service, IC = BC = ₹25,00,000
- Base = ₹22,500 × (120/300) = ₹9,000 → raised to ₹10,000 (minimum)
- IC/BC ratio = 1.0
- Monthly Payout: ₹10,000 + DR (minimum guarantee applies)
- Lump Sum: 20 × ₹6,885 = ₹1,37,700
- Family Payout: ₹6,000 + DR
Scenario 3(a): 10 Years, Partial Withdrawal Not Recouped
Conditions: 10 years, IC = ₹22,00,000 (after withdrawal), BC = ₹25,00,000
- Base (minimum): ₹10,000
- IC/BC ratio = 22/25 = 0.88
- Monthly Payout: ₹10,000 × 0.88 = ₹8,800 + DR
- Note: Falls below ₹10,000 due to corpus shortfall from withdrawal
- Family Payout: ₹5,280 + DR
Scenario 5: 25 Years, Partial Withdrawal Not Recouped
Conditions: 25 years, IC = ₹40,00,000, BC = ₹50,00,000
- Base = ₹22,500
- IC/BC ratio = 40/50 = 0.80
- Monthly Payout: ₹22,500 × 0.80 = ₹18,000 + DR
- Loss vs full pension = ₹4,500/month (20% reduction)
- Family Payout: ₹10,800 + DR
Scenario 6: Better Investment Performance (IC > BC)
Conditions: 25 years, IC = ₹55,00,000, BC = ₹50,00,000
- Base = ₹22,500
- Effective IC/BC capped at 1.0 (IC > BC)
- Monthly Payout: ₹22,500 + DR (full pension)
- Excess returned: ₹55,00,000 − ₹50,00,000 = ₹5,00,000 credited to bank account
- Family Payout: ₹13,500 + DR
Scenario 7(a): Poor Performance, No Recoupment
Conditions: 25 years, IC = ₹45,00,000, BC = ₹50,00,000
- Base = ₹22,500
- IC/BC = 45/50 = 0.90
- Monthly Payout: ₹22,500 × 0.90 = ₹20,250 + DR
- Monthly shortfall = ₹2,250 (10% reduction)
- Family Payout: ₹12,150 + DR
Scenario 7(b): Poor Performance, Partial Recoupment
Conditions: 25 years, IC = ₹45,00,000 → Recouped ₹2,50,000 → Effective IC = ₹47,50,000, BC = ₹50,00,000
- Base = ₹22,500
- IC/BC = 47.5/50 = 0.95
- Monthly Payout: ₹22,500 × 0.95 = ₹21,375 + DR
- Recoupment benefit = ₹1,125/month more than Scenario 7(a)
- Family Payout: ₹12,825 + DR
Key Lessons from Official Scenarios
- IC ≥ BC ensures full pension — investment choices matter
- Partial withdrawals without recoupment cause permanent pension reduction
- Even partial recoupment significantly improves the pension
- Better investment performance (IC > BC) returns surplus without increasing pension beyond the guaranteed amount
- The minimum guarantee (₹10,000) applies to the base, not the final payout — it can be reduced by corpus shortfalls
Verify all these scenarios using our UPS Calculator — enter the exact values from each scenario and confirm the results match the official gazette.