The Integrated Pension Scheme (UPS) has been started from 1 April 2025 to give guaranteed pension to central employees. Existing and newly recruited employees can apply to join the scheme. The Pension Fund Regulatory and Development Authority (PFRDA) has issued a notification in this regard.
The process of choosing UPS option
- The application process will start on the online portal from 1 April.
- Employees can choose one of the UPS or NPS.
- More than 23 lakh employees will be benefited under this scheme.
NPS vs. UPS: What is the difference?
| Speciality | NPS (national pension scheme) | UPS (Integrated Pension Scheme) |
|---|---|---|
| Guaranteed pension | No, market based returns | Yes, minimum ₹ 10,000 pension ensured |
| Government contribution | 14% | 18.5% |
| Employee contribution | 10% | 10% |
| Pension on retirement | It is necessary to buy annuity plan from 40% amount | 50% of the average salary of final 12 months will be given as pension |
| Gratuity | Not available | Will get |
| Family pension | No | Family will get 60% pension on employee’s death |
Who can join UPS?
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Current Employees:
- Those who joined government service after 1 January 2004 and are in NPS can choose the option of UPS.
- For this, Form A2 will have to be filled.
-
New Employees:
- After 1 April 2025, employees who join the service can choose UPS.
- For this, Form A1 will have to be filled.
-
Retired Employees:
- Those who were previously under NPS and have retired can join UPS.
- For this, Form B2 will have to be submitted with KYC documents.
-
In case of employee’s death:
- Legally married spouses can claim UPS.
- For this, Form B6 and KYC documents have to be given.
-
For those taking voluntary retirement (VRS):
- At least 25 years of service will be mandatory to take advantage of UPS.
- The employee will have to wait till the age of 60 years is completed.
Major conditions of UPS
At least 10 years of service will be necessary to get pension under UPS.
The government’s contribution would be 18.5% and 10% of the employee, which would contribute to the total contribution of 28.5%.
A minimum guaranteed pension of ₹ 10,000 will be available every month.
On completion of 25 years of service, 50% of the average salary of the last 12 months will get pension.
Employees with 10 to 25 years of service will get pension on proportional basis.
In the event of the employee’s death, the family will get 60% of the amount as a family pension.
How to apply?
- Online application: Forms will be available on NPS Cra’s official website npscra.nsdl.co.in.
- Offline application: Employees can fill the physical form and submit it to the concerned department.
Which employees will not get the benefit of UPS?
Employees who have been dismissed, removed from service, or those who have resigned will not be eligible for this scheme.
Once the option of UPS is selected, changes will not be possible.
