What Is the Unified Pension Scheme (UPS)?
The UPS is an improved pension model introduced by the Centre that:
1) Blends the assured benefits of OPS.
2) Retains the fund-based investment model of NPS.
3) Offers a minimum guaranteed pension and additional contributions from the government.
What’s New in the Unified Pension Scheme (UPS)?
If you retired from a central government job on or before March 31, 2025, there’s great news for you. The Pension Fund Regulatory and Development Authority (PFRDA) has officially announced that such retirees can now opt for the Unified Pension Scheme (UPS) — a hybrid model that merges the benefits of both NPS and the Old Pension Scheme (OPS).
Who Is Eligible?
The latest circular from NPS Trust clarifies:
1) Central government employees retired on or before March 31, 2025.
2) Must have a minimum of 10 years of qualifying service.
3) Includes the retiree or their legally wedded spouse.
4) Excludes Armed Forces (still governed by separate pension rules).
UPS (Unified Pension Scheme) Extended for Retired Central Govt Employees
The government has extended UPS coverage even for past retirees, not just future ones. If you meet the criteria, you can apply by June 30, 2025.
Deadline to Apply: June 30, 2025
Key Features of UPS
| Feature | Details |
|---|---|
| Implementation Date | April 1, 2025 |
| Applicable to | NPS-covered Central Govt Employees |
| Qualifying Service | Minimum 10 years |
| Full Pension Qualification | Minimum 25 years of service |
| Pension Type | Fund-based + Assured Monthly Payout |
| Govt. Contribution | 10% of Basic Pay + DA (plus an extra 8.5% to a common corpus) |
| Minimum Guaranteed Pension | ₹10,000/month |
NPS Doesn’t Guarantee Pension?
Yes. One major drawback of NPS has been the lack of a guaranteed pension amount post-retirement.
Its solution comes with UPS - With 50% of the last 12-month average basic pay as assured payout, and ₹10,000 minimum monthly pension, UPS tackles that uncertainty.
Assured Payout Under UPS
1) 50% of average basic pay (last 12 months) — for those with 25+ years of service.
2) Proportional payout for 10–25 years of service.
3) Minimum ₹10,000/month pension if you meet the contribution and service criteria.
Note: For voluntary retirees with 25+ years of service, the pension will begin from the date of notional superannuation.
Unsure of Contribution Requirements?
Here's a breakdown of contributions:
| Contributor | Rate |
|---|---|
| Employee | 10% of (Basic + DA) |
| Govt Matching | 10% of (Basic + DA) |
| Govt Additional Pool | 8.5% of (Basic + DA) |
Didn’t Know How to Claim?
Follow these simple steps to apply -
1) Visit the NPS Trust Portal.
2) Look for the “Unified Pension Scheme Application” section.
3) Upload documents like PPO, Aadhaar, and Service Certificate.
4) Submit by June 30, 2025.
Tip: Attend a webinar before applying for better clarity. PFRDA is conducting regular webinars on how to apply and understand UPS on the official NPS website.
What Happens After You Apply?
Once verified and approved -
1) Your UPS account will be created.
2) The monthly pension payout will start from July 2025.
3) You’ll receive a confirmation from PFRDA or your department.
Final Thoughts: Should You Opt for UPS?
Yes, if you -
1) Retired on or before March 31, 2025.
2) Had 10+ years of service.
3) Want a guaranteed monthly pension.
4) Prefer government-backed stability.
Then, opting for UPS is a wise decision — but only if done before June 30, 2025.
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