Unified Pension Scheme: What Is The Minimum Assured-payout, How It Be Calculated?

New Delhi: The Unified Pension Scheme (UPS) introduced by the central government is coming into effect from 1 April 2025. UPS has been introduced as an option under the National Pension System (NPS) for the Central Government employees covered under NPS so that they may receive an assured payout after their retirement. 

The ‘fund-based’ payout system relies on the regular and timely accumulation and investment of applicable contributions (from both the employee and the employer (the Central Government)) for grant of monthly payout to the retiree.

How is the assured payout calculated under UPS? 

The rate of full assured payout will be @50% of 12 monthly average basic pay, immediately prior to superannuation. Full assured payout is payable after a minimum 25 years of qualifying service. In case of lesser qualifying service period, proportionate payout would be admissible. 

A minimum guaranteed payout of Rs 10,000 per month shall be assured in case superannuation is after 10 years or more of qualifying service subject to timely and regular credit of contributions and no withdrawals. In cases of voluntary retirement after a minimum 25 years of qualifying service, assured payout will commence from the date on which the employee would have superannuated if he had continued in service.

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.

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).

Who is eligible for the UPS? 

The Central Government employees, who are covered under NPS, are eligible to submit their option for UPS under National Pension System