COMPARISON OF UPS-NPS & OPS

S.N. Particulars UPS NPS OPS

24.01.2025 Notification

1 Date of effect 01.04.2025 01.01.2004 01.04.1957

2 Pension / 50% of the average basic pay Pension amount 50% of the last drawn
Assured over the last 12 months of depends on the salary or average
Payout for retirement for employees investments made in earnings over the
UPS retiring with at least 25 years of the NPS investment previous 10 months of
service and proportionate scheme and the service, whichever is
pension benefits for employees accumulated corpus. more with at least1020
with 10-25 years of service. years of service.
3 Minimum Rs. 10,000 per month for Minimum pension Rs. 9,000 per month
pension / employees with at least 10 amount depends on for employees with at
Assured Pay years of service. the investments made least 10 years of
out for UPS in the NPS scheme. service.

4 Family Family payout @ 60% of the Family pension 30% of basic pay
pension / payout admissible to the payout amount depends on subject to the
Family Pay out holder, immediately before his the accumulated minimum of Rs.9000
demise, will be assured to the corpus and the chosen per month.
legally wedded spouse. annuity plan.
5 Dearness The Dearness Relief will be There is no provision The pension is revised
twice a year, i.e. on
Relief (DR) worked out in the same manner for automatic DR
January 1 st and July
as Dearness Allowance increments to protect
1 st , by increasing the
applicable to serving against inflation.
Dearness Relief (DR)
employees. DR will be payable
6 Gratuity only when
Eligible payout
( But commences.
No mention) Eligible Eligible

7 Lump sum A lump sum payment will be 60% of the NPS A lump sum amount
amount allowed on superannuation corpus can be could be taken at the
payment / @10% of monthly emoluments withdrawn as a lump time of retirement, not
Commutation (basic pay + DA) for every sum upon exceeding 40%,
of pension completed six months of superannuation. through commutation
qualifying service. of pension.
Full pension restores
60% of the Benchmark on completion of 15
corpus can be withdrawn as years.
a lump-sum upon In case of death of
superannuation- but Pension pensioner commutated
shall be restricted to balance portion will not be
amount recovered.

8 Employer’s 10% of basic pay + DA. 14% of basic pay + No contribution to the
contribution DA. pension fund

Employee’s 10% of basic pay + DA. 10% of basic pay + No contribution to the
contribution (Individual corpus consists of DA. pension fund.
employer’s contribution +
employees’ contribution)
9 Pool Corpus Additional contribution -- --
estimated 8.5% of basic pay +
DA for supporting assured
payouts.

FOR REFERENCE: CCGEW

 10 Additional Not available. Not available. Pension goes up by
pension / 20%, 30%, 40%, 50%
family pension and 100% after
attaining the age 80,
85, 90, 95 and 100
years respectively.
11 Voluntary in cases of voluntary retirement 80% of corpus will be Will get all eligible
retirement on after a minimum 25 years of kept for annuity fund. settlement at the time
completion of qualifying service, assured of voluntary retirement
qualifying payout will commence from the after completing 20
service date on which the employee years of service.
would have superannuated, if
he had continued in service.
12 Risk factor Partially risk-free as it provides There are market risks Risk-free as it provides
minimum assured pension. as the returns depend an assured pension.
on the performance of
the market-linked
funds.
13 Tax for 10% contribution by N.A
contribution employee is taxable.
towards Eligible for tax benefit
pension fund for combined limit of
Rs.1.5 lakh under 80C,
80CCC and
80CCD(1).

INDIVIDUAL CORPUS, BENCH MARK CORPUS & ASSURED PAYOUT

1. If an employee opts for UPS, outstanding NPS corpus in the employees Permanent Retirement Account
Number shall be transferred to the employee’s individual corpus under the UPS.
2. ‘Bench mark corpus’ value will be computed by PFRDA with following assumption
a) Contributions for both the employees and the employer
b) In case of missing contributions, an appropriate value, to be determined by PFRDA
c) Investment of such contributions is made as per the ‘default pattern’ of investment
3. At the time of superannuation or retirement
a) Employee under UPS has to authorise transfer of the value or units in the individual corpus to the
pool corpus, equivalent to the value or units of the benchmark corpus for authorisation of Assured
Payout.
b) In case the value or units of individual corpus is less than value or units of the benchmark
corpus, the employee will have an option to arrange for additional contribution to meet this gap.
c) In case the value or units of individual corpus is more than the value or units of the benchmark
corpus, the employee shall authorise transfer of value or units equivalent to the benchmark corpus
and the balance amount in the individual corpus will be credited to the employee.
4. In case the values or units transferred by the employee from the individual corpus to the pool corpus, is
less than the value or units of the benchmark corpus, payout proportionate to the assured payout shall
be authorised.
5. UPS is a fund-based pension system.

FOR REFERENCE: CCGEW

 Admissible Monthly Assured Payout based on set of following assumptions
(i) The 12 monthly average basic pay before superannuation of an employee is Rs 45,000.
(ii) The employee has a qualifying service of 25 years (300 months) or more.
(iii) All contributions of the employee have been credited regularly and there are no missing credits.
(iv) The employee has opted for ‘default pattern’ of investment.
(v) The employee did not make any partial withdrawals

Lump Sum Payment on superannuation or VR after 25 years of qualifying service

Basic Pay Rs.45000 + DA Rs.23,850 @ 53% = Rs. 68,850

Scenario Full filling Year/month Individual Bench Assured Payout

conditions of Corpus Mark
service (IC) Corpus
(BC)
1 (i) to (v) 25/300 50 lakh 50 lakh Rs. 22,500 + DR
2 (i), (iii), (iv) & (v) 15/180 30 lakh 30 lakh Rs. 13,500 + DR
3 (i), (iii), (iv) & (v) 10/120 25 lakh 25 lakh As per calculation
Rs.9000
Minimum assured pay
out Rs.10,000
3a 22 lakh 25 lakh Rs. 8,800 + DR
(Partial Full corpus has not been
withdrawal) deposited from individual
corpus to pool corpus
4 (i), (ii), (iv) & (v) 25/300 45 lakh 50 lakh Rs. 20,250 + DR
(Missing
Credit)
5 (i), (ii), (iii) & (iv) 25/300 40 lakh 50 lakh Rs. 18,000 + DR
(partial
withdrawal)
6 (i), (ii), (iii) & (v) 25/300 55 lakh 50 lakh Rs.22,500 + DR
(5 lakh one time credit)
7 (i), (ii), (iii) & (v) 25/300 45 lakh 50 lakh Rs. 20,250 + DR
(Investment
choice in IC
value lower
than BC)
7b 45 lakh 50 lakh 21,375 + DR
2.5 lakh
partial
recoup by
employee

FOR REFERENCE: CCGEW

 BASIC PAY RS.45000 + DA RS.23,850 @ 53% = RS. 68,850

1/10TH OF EMOLUMENT IS RS.6,885

Length of qualifying service Number of completed 6 months Lump sum (Rs)

10 years (120 months) 20 1,37,700
15 years (180 months) 30 2,06,550
20 years (240 months) 40 2,75,400
25 years (300 months) 50 3,44,250
30 years (360 months) 60 4,13,100
35 years (420 months) 70 4,81,950

COMPARISON BETWEEN UPS & OPS ON SOME OF THE TERMINAL BENEFITS

FOR AN EMPLOYEE RETIRING IN THE BASIC PAY
OF RS.45,000 + 53% DA COMPLETING 25 YEARS OF SERVICE.

S. No Description UPS OPS

1 Basic Pay Rs.45,000 Rs.45,000

2 DA 53% 53%

3 Basic Pay + DA Rs.68,850 Rs.68,850

4 Pay Out / Basic Pension Rs.22,500 Rs.22,500

5 DR @ 53% Rs.11925 Rs.11925

6 Total pension per month Rs.34,425 Rs.34,425

7 Maximum pension commutation (40%) in OPS Rs.10,59,480

8 Lump sum in UPS Rs.3,44,250

9 Pay out +DR / Pension + DR after commutation Rs.34,425 Rs.25,425

10 Contribution during service for pension corpus fund per month 10% of BP + DA Nil

11 Family Pay out / Basic Family Pension Rs.13,500 Rs.13,500

12 Family Pay out + DR / Family Pension + DR Rs.20,655 Rs.20,655

13 Pay out / Basic pension at the age of 80 Rs.22,500 Rs.27,000

14 Family Pay out / Basic family pension at the age of 80 Rs.13,500 Rs.16,200

FOR REFERENCE: CCGEW