Unified Pension Scheme (UPS) - Features, Eligibility, Switch Options

What is the Unified Pension Scheme (UPS)?

The Unified Pension Scheme (UPS) is a pension plan designed to strengthen the financial security of government employees. Introduced as an important option under the National Pension System (NPS), its designed to broaden the financial security of retired government employees. The UPS offers a guaranteed pension to subscribers after a minimum of 25 years of government service. Central government employees who complete 25 years of service will get a guaranteed pension equal to 50% of their average basic salary. In the event of the employees death, his/her spouse receives 60% of this pension as a family pension.

Employees get a minimum assured pension of ₹10,000 per month. The government contributes 18.5% of basic pay and dearness allowance (DA). Employees contribute 10% of basic pay and DA. UPS also allows its subscribers to switch to the NPS under certain conditions.

Important Details of the Unified Pension Scheme

Source: PFRDA; data as of June 2026.

Key Features of UPS

Below are the features of the Unified Pension Scheme (UPS):

• Fixed Pension: Employees receive a fixed pension of 50% of their average basic pay over the last 12 months before retirement, after completing 25 years of service.
• Pro-rata Pension: For 10 to 25 years of service, the pension is proportionate to the years served.
• Family Pension: If the employee passes away, the family receives 60% of the employees pension.
• Lump Sum Payment: In addition to gratuity, employees get a lump sum at retirement, calculated as 1/10th of monthly pay and DA for every six months of service.
• Minimum Pension: Employees with at least 10 years of service get a guaranteed minimum pension of ₹10,000 per month.
• Dearness Relief: Pensioners receive dearness relief based on AICPI-IW, similar to serving employees.
• Gratuity: UPS subscribers also get retirement gratuity and death gratuity under the CCS (Payment of Gratuity under NPS) Rules, 2021.
• Partial Withdrawal: Subscribers can withdraw up to 25% of their own contribution (excluding returns), up to three times, for education, marriage, housing, medical needs, disability, or skill development.
• Voluntary Retirement: Employees can take voluntary retirement after 20 years of qualifying service, with the assured pension paid on a pro-rata basis.

Eligibility Criteria for the UPS-Unified Pension Scheme

The following categories of employees are eligible for UPS:

• Existing employees: Central government employees in service as of April 1, 2025, who are covered under the National Pension System (NPS).
• New recruits: Employees joining central government service on or after April 1, 2025.
• Retired employees: Employees who superannuated, voluntarily retired, or retired under FR 56(j) on or before March 31, 2025, while covered under NPS.
• Spouses: The legally wedded spouse of a subscriber who retired and passed away before choosing between UPS and NPS.

State governments can also choose to adopt UPS for their employees. Maharashtra was the first state adopt the UPS for the states government employees, in August 2024.

How to Join the Unified Pension Scheme?

Eligible employees can choose UPS either online through the Protean CRA portal or offline using physical forms. Here is how the process works:

1. Step 1: Find the right form

   Select the valid form, like Form A1 (for new recruits), Form A2 (existing NPS subscribers), Form B1/B2 (employees who have already retired), etc.

2. Step 2: Get the form

   Download the relevant form from the Protean CRA website or collect a physical copy from your office.

3. Step 3: Fill in your details

   Complete the form in English using block letters. You will need your personal details, service details, and bank account information.

4. Step 4: Enclose required documents

   For physical submission, attach proof of bank account such as a cancelled cheque, passbook copy, or bank statement, etc.

5. Step 5: Submit the form

   Submit the completed form to your Drawing and Disbursing Officer (DDO). If applying online, you can fill and submit the form directly through the Protean CRA portal.

6. Step 6: Confirmation

   Once your DDO verifies and processes the form, your UPS account is set up under your existing PRAN (Permanent Retirement Account Number).

How is the Pension Calculated Under the Unified Pension Scheme (UPS)?

The pension under UPS is calculated as follows:

• Base Pension: 50% of the average basic pay drawn over the last 12 months before retirement (for 25+ years of service).
• Dearness Allowance (DA): The base pension is adjusted periodically for inflation through dearness relief.

Note that the UPS offers a minimum monthly pension of ₹10,000 for government employees who retire with at least 10 years of service.

Contributions Returns on the UPS Scheme

The Unified Pension Scheme (UPS) offers guaranteed pension benefits to government employees. Contributions come from both the employer and the employee:

• Government Contribution: 18.5% of basic salary and DA.
• Employee Contribution: 10% of basic salary and DA.

Pension Returns:

• Employees with 25+ years of service get 50% of their average basic pay over the last 12 months as a pension.
• Employees with 10 to 25 years of service get a pro-rata pension, with a minimum of ₹10,000 per month.

UPS vs. NPS - Key Differences

Heres a side-by-side comparison of the key features of the Unified Pension Scheme (UPS) and the National Pension Scheme (NPS):

Source: PFRDA, data as of June 2026.

Can I Switch from the UPS to the NPS Scheme?

Yes. The government introduced a one-time, one-way switch facility from UPS to NPS in August 2025. Employees who opted for UPS can switch to NPS once but cannot switch back to UPS afterwards.

The switch must be exercised at least one year before superannuation or three months before voluntary retirement. If an employee does not use this option within the given timeline, they continue under UPS by default. The switch is not allowed in cases of dismissal, removal, or compulsory retirement as a penalty or where disciplinary proceedings are pending.

Conclusion

The Unified Pension Scheme (UPS) gives central government employees a secure retirement income through a guaranteed pension, family pension, gratuity, and inflation-protected rates. With tax benefits now applicable with NPS and a one-time