Frequently Asked Questions (FAQ)
What is the Unified Pension Scheme (UPS)?
The UPS is an option under the National Pension System (NPS) introduced by the Central Government for its employees to receive an assured payout after retirement. It is a fund-based system relying on regular contributions.
Who is eligible for the UPS?
Central Government employees covered under NPS are eligible to submit their option for UPS. This includes existing employees, new recruits joining on or after April 1, 2025, and past retirees who meet the prescribed conditions.
How is the assured payout calculated?
The full assured payout is 50% of the 12-monthly average basic pay immediately prior to superannuation, payable after a minimum of 25 years of qualifying service. For lesser service (minimum 10 years), a proportionate payout is admissible.
What is the minimum assured payout?
A minimum assured payout of Rs. 10,000 per month is guaranteed for superannuation after 10 years or more of qualifying service.
What is the family payout under UPS?
In case of the death of the payout holder after superannuation, a family payout of 60% of the admissible payout is assured to the legally wedded spouse.
Is there any provision for inflation protection?
Yes, Dearness Relief (DR) is available on the assured payout and family payout, worked out in the same manner as Dearness Allowance applicable to serving employees.
What happens if my Individual Corpus is less than the Benchmark Corpus?
If your individual corpus is less than the benchmark corpus, you have the option to arrange for additional contributions (recoupment) to meet the gap. If not recouped, your payout will be proportionately reduced.