NPS has made it clear that NPS subscribers who fulfill certain conditions can also avail of UPS. This is a golden opportunity for lakhs of government employees who are now dreaming of a fixed pension like the Old Pension Scheme (OPS). This new scheme has come into effect from 1 April 2025. So do not delay, know who is eligible and how you can take advantage of this wonderful scheme!
What is the Unified Pension Scheme (UPS)
To provide a fixed pension to government employees like the Old Pension Scheme (OPS), the government has recently introduced a Unified Pension Scheme (UPS) by changing the National Pension System (NPS). This new scheme has come into effect from 1 April 2025, which aims to provide a strong base of financial security to the employees after retirement.
NPS holders will also get the benefit of UPS
The NPS Trust has issued a public notice explaining in detail how NPS holders will get the benefit of UPS. This is a big relief for all those NPS subscribers who were looking for a guaranteed monthly income.
Who will get the benefit
The Integrated Pension Scheme is also available to those who have already retired! This benefit can be availed by such pensioners or their spouses who have retired on or before 31 March 2025 while being a subscriber of NPS.
Key conditions for eligibility
Date of retirement: The employee must have retired on or before 31 March 2025 while being an NPS subscriber.
Minimum service period: Must have completed a minimum of 10 years of mandatory service under the Central Government.
Such eligible NPS subscriber pensioner or their spouse will get additional benefits from UPS. For this, they will not even need to surrender the benefits available under NPS such as annuity benefits. They will then receive pension payments as follows:
Lump Sum Payment
This will be equal to one-tenth of their last Basic Salary and Dearness Allowance (DA).
This will be calculated based on their mandatory minimum service of 10 years.
One-tenth of their Basic Salary and Dearness Allowance will be calculated based on every 6 months of service.
Monthly Payment
This amount will be calculated as the sum of the UPS pay-out and Dearness Relief (Dearness Allowance given to pensioners).
From this, a representative amount of annuity benefit received under NPS will be deducted.
Simple Interest Payment
Simple interest will be paid to NPS subscribers on the balance of UPS excess benefit.
This will be as per the PPF (Public Provident Fund) interest rate.
How to claim UPS benefits
The seventh schedule of PFRDA has given detailed information on how NPS subscribers will avail of UPS benefits. The method to claim it is given below:
To avail this facility, NPS subscribers (Form-B2) or their spouse (Form-B4 or B6) have to fill the relevant form.
The filled form has to be submitted to the concerned officer.
If the pensioner or their spouse wishes, they can also submit this form online. For this, they have to visit www.npscra.net.nsdl.co.in/ups.php.