The Unified Pension Scheme (UPS) is an option under the National Pension System (NPS) for central government employees in India. It provides an assured monthly Pension after retirement, relying on a fund-based system where both the employee and the government contribute regularly. This scheme aims to enhance financial security for retirees, blending features of NPS pension models. UPS Calculator is emerging tool for calculate pension for government employees.
UPS was introduced in 2024 and is set to be implemented from April 1, 2025, and is designed for central government employees, with the option for state governments to adopt it. It addresses long-standing demands for a more comprehensive pension system, potentially benefiting millions of employees.
UPS Calculator
Disclaimer:The UPS Calculator on calcguide.com is meant for information purposes only and not intended to create any right, obligation or to constitute any advice or opinion or to substitute any professional advice, and should not be used as a basis for any investment decision.
| 1- UPS Subscriber Registration form - Government Sector | Form A1 |
| 2- UPS Subscriber Migration form - Government Sector | Form A2 |
| 3- UPS Claim & Payout Form – Retirees till Mar 31, 2025 | Form B2 |
| 4- Claim Form for Spouse of a deceased retiree ( till March 31, 2025) eligible for UPS benefits but not availed | Form B6 |
| 5- Gazette Notification on Unified Pension Scheme | Download |
Related Calculator
Unified Pension Scheme Features
- Assured Pension: 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period up to a minimum of 10 years of service.
- Assured Family Pension: In case of an employee’s death, their family receives 60% of the pension immediately, ensuring continued financial support.
- Inflation Adjustment: on assured pension, on assured family pension and assured minimum pension
Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees - Lump sum payment at superannuation in addition to gratuity: On retirement, employees receive a lump sum (10% of monthly pay per six months of service) alongside gratuity, without reducing the pension amount.
- Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.
Who is Eligible for UPS ?
The Unified Pension Scheme applies to:
- Central government employees currently under NPS who opt into UPS.
- New recruits joining after April 1, 2025, who choose UPS over NPS.
- Retirees from NPS (post-2004) who switch to UPS, receiving arrears for past differences.
- Spouses of deceased NPS-covered employees, ensuring family pension benefits.
NPS vs UPS – Key Differences (2025 Comparison)
| Feature | Unified Pension Scheme (UPS) | National Pension Scheme (NPS) |
|---|---|---|
| Type | Proposed centralized pension system | Govt.-backed market-linked scheme |
| Returns | Fixed/Guaranteed (if applicable) | Market-linked (higher risk & reward) |
| Tax Benefits | Likely under 80C/80CCD | Up to ₹2 lakh (80C + 80CCD) |
| Withdrawal Rules | Flexible (expected) | Tier I locked till 60, Tier II flexible |
| Risk Level | Low (if govt.-backed) | Moderate to High (market-dependent) |
| Best For | Simplified pension planning | Long-term wealth growth |
FAQs : UPS Calculator for Government Employees
1. When will the Unified Pension Scheme (UPS) become operational?
- The Unified Pension Scheme will be operational from 1 April, 2025.
2. What is the minimum assured payout under UPS?
- A minimum assured payout of Rs.10,000 per month has been guaranteed under Unified Pension Scheme in case superannuation is after 10 Years or more of qualifying service, subject to timely and regular credit of contributions and no withdrawals.
3. Who is eligible for the UPS.?
- The Central Government employees, who are covered under NPS, are eligible to submit their option for UPS under the National Pension System.
4. What is the family payout under UPS?
- In case of death of the payout holder after superannuation, family payout @60% of the payout admissible to the payout holder immediately before his demise, shall be assured to the legally wedded spouse (spouse legally wedded as on the date of superannuation or on the date of voluntary retirement or retirement under FR 56(j), as may be applicable).
5. Can I change my pension scheme option once I have selected the UPS?
- In case an employee chooses the UPS option, all its stipulations and conditions shall be deemed to have been opted for, and such option, once exercised, shall be final.
6. Which gives better returns – UPS or NPS?
- NPS has higher return potential (8-12%), while UPS may offer fixed but lower returns.
Got more questions? Drop them in the comments Box !