UPS vs NPS vs OPS: New Unified Pension Scheme with 50% assured pension, family pension and more
Unified Pension Scheme (UPS), that assures a pension of 50% of the salary for those who joined the service after January 1, 2004, under the National Pension System (NPS). This new scheme will take effect from April 1, 2025. NPS subscribers now have the option to switch to the Unified Pension Scheme (UPS), which provides this assured pension starting from the next financial year.
The government's plan to transform NPS came against the backdrop of several non-BJP states deciding to revert to the DA-linked Old Pension Scheme (OPS) and employee organisations in some other states raising demand for the same.
Here's how UPS, NPS, and OPS will stack up;
UPS: Unified Pension Scheme
Assured Pension:
- 50% of the average basic pay drawn over the last 12 months prior to superannuation.
- Applicable for a minimum qualifying service of 25 years.
- Proportional for service periods between 10 and 25 years.
Assured Family Pension:
- 60% of the employee's pension immediately before their demise.
Assured Minimum Pension:
Unified Pension Scheme: What it is, its benefits & features, and how it is different from NPS
- Rs 10,000 per month upon superannuation after a minimum of 10 years of service.
Inflation Indexation:
- Applied to assured pension, assured family pension, and assured minimum pension.
Dearness Relief:
- Based on All India Consumer Price Index for Industrial Workers (AICPI-IW), similar to service employees.
Lump Sum Payment at Superannuation:
- 1/10th of monthly emoluments (pay + DA) for every
