Unified Pension Scheme: The Pension Fund Regulatory and Development Authority (PFRDA) has implemented the ‘Unified Pension Scheme’ (UPS) under NPS (National Pension System) from April 1, 2025. This is a historic move that will give the benefit of a monthly assured pension to government employees. If you are currently in NPS and want to opt for UPS, then you have a golden opportunity till June 30, 2025! This scheme will strengthen your post-retirement financial security and help you live a worry-free life.

What is the Unified Pension Scheme

Unified Pension Scheme (UPS) is a new initiative brought under the NPS framework, which aims to provide a fixed and assured monthly pension to government employees after retirement. This scheme is close to the traditional defined benefit pension schemes, which were available in the earlier pension system.

The promise of assured pension

If you have served for 25 years under UPS, you will get 50% of the average basic salary of the last 12 months just before your retirement as a monthly pension.

Benefits even for shorter service periods

If someone has served for more than 10 years but less than 25 years, he will also get a pension of a proportionately lesser amount. For example, if your basic salary is ₹50,000, you will get a minimum of ₹25,000 as a monthly pension.

Minimum assured pension

On retirement after a minimum service period of 10 years, you will get an assured minimum pension of ₹10,000 per month, even if the service period is less.

Use UPS calculator

The Department of Financial Services under the Ministry of Finance has released a calculator for UPS. Government employees can estimate their pension using the Unified Pension Scheme (UPS) calculator. This calculator will help you assess your potential pension amount, allowing you to plan your retirement better.

How to use the calculator

You can use the calculator by visiting https://npstrust.org.in/ups-calculator.

In the calculator, you have to provide information like your date of birth, date of joining the job, retirement age, monthly basic salary, annual increment, etc.

This tool will help you estimate the pension based on your specific situation.

How will you get benefits from UPS

The Integrated Pension Scheme offers several important benefits, which ensure financial security for employees and their families:

Assured pension
Assured family pension
Assured minimum pension
Inflation Index
Additional benefits for military personnel

Integrated Pension Scheme rules and eligibility

It is important to keep in mind a few important things before choosing this scheme:

  • Note that employees who opt for UPS will not get any other policy concessions, policy changes, or financial benefits.
  • The decision cannot be changed once the UPS option is opted for. Therefore, consider all aspects carefully before making a choice.
  • The government’s contribution to this scheme will be 18.5% of the total amount of basic salary and dearness allowance (DA), which was 14% earlier. At the same time, employees will continue to contribute 10% to their pension.
  • All employees who have retired or are retiring under NPS on March 31, 2025 will get the benefit of this scheme.
  • The employee has to serve at least 25 years to receive a pension.
  • If the employee dies, the employee’s family will get 60 percent of the pension received by the employee.
  • If the employee’s service is less than 25 years and more than 10 years, the pension amount will be decided on the basis of proportional allocation.
  • Irrespective of the employee’s years of service, the minimum amount of his pension will not be less than ₹ 10,000.