Retired govt NPS subscribers with min 10 years can claim additional benefits under UPS

The central government NPS subscribers who retired on or before March 31, 2025, with a minimum of 10 years of qualifying service or their spouse can claim the additional benefits under the Unified Pension Scheme (UPS).

This is over and above the National Pension System (NPS) benefits already claimed, the finance ministry said in a statement on Friday.

As per the scheme, the retired employee who opted for UPS would get a lump sum payment (one time) of one-tenth of the last drawn basic pay and dearness allowance thereon, for each completed six months of qualifying service and the monthly top-up amount is calculated based on admissible UPS payout and Dearness relief (DR) minus representative annuity amount under the NPS.


Arrears with simple interest as per applicable PPF rates would be also given to retired employees, it said.

The last date for making a claim by such employees or their spouses is June 30, 2025, it added.

The finance ministry in January notified the Unified Pension Scheme (UPS), which promises an assured pension of 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation.

The UPS would be applicable to central government employees who are covered under the National Pension System and who choose the option.

As per the notification, the rate of full assured payout will be 50 per cent of 12 monthly average basic pay, immediately prior to superannuation subject to a minimum qualifying service of 25 years against a market returns linked payout under the NPS.

The notification provided the option to 23 lakh government employees to choose between UPS and NPS, which came into effect on January 1, 2004. PTI