This clarification aligns with the Ministry of Finance’s earlier notification (dated 24 January 2025) introducing the UPS for Central Government civil service recruits from 1 April 2025, offering a one-time option for existing NPS-covered employees to transition to the new scheme.

The gratuity benefits will be governed by the Central Civil Service (Payment of Gratuity under NPS) Rules, 2021.

EXTENSION OF BENEFIT OF RETIREMENT GRATUITY AND DEATH GRATUITY TO EMPLOYEES OPTING FOR UNIFIED PENSION SCHEME (UPS)

Ministry of Finance, Department of Financial Service vide its Notification No. FS-1/3/2023-PR dated 24.01.2025 had notified introduction of the Unified Pension Scheme (UPS) as an option under NPS for the recruits to the Central Government civil service w.e.f. 01.04.2025 giving one time option to the Central Government employees covered under the National Pension System (NPS) for inclusion under the Unified Pension Scheme.

In view of the above, the Department of Pension and Pensioners’ Welfare vide its OM No. 57/01/2025-P&PW(B)/UPS/10498 dated 18.06.2025, has issued clarification that the Central Government employees opting for Unified Pension Scheme shall be eligible for benefit of ‘Retirement gratuity and Death gratuity’ under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021.

PIB

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• ✅ Unified Pension Scheme (UPS) introduced as an option under NPS from 01 April 2025.
• ✅ Existing NPS-covered employees can opt into UPS via a one-time choice.
• ✅ Employees under UPS will now receive Retirement Gratuity and Death Gratuity benefits.
• ✅ Gratuity benefits governed by CCS (Payment of Gratuity under NPS) Rules, 2021.
• ✅ This move ensures greater financial protection for Central Government employees.

No. 57/01/2025- P&PW(B)/UPS/10498
Government of India
Ministry of Personnel, P.G. and Pensions
Department of Pension and Pensioners’ Welfare

Lok Nayak Bhawan, Khan Market,
New Delhi, the 18 June, 2025

OFFICE MEMORANDUM

Subject: Extension of benefits of ‘Retirement Gratuity and Death Gratuity’ to the Central Government employees covered by Unified Pension Scheme – reg.

The undersigned is directed to refer to the Ministry of Finance, Department of Financial Service’s Notification No. FS-1/3/2023-PR dated 24.01.2025 regarding introduction of the Unified Pension Scheme as an option under NPS for the recruits to the Central Government civil service w.e.f. 01.04.2025 giving one time option to the Central Government employees covered under the National Pension System (NPS) for inclusion under the Unified Pension Scheme.

2. Accordingly, it is clarified that the Central Government employees covered by Unified Pension Scheme shall be eligible for benefit of ‘Retirement gratuity and Death gratuity’ under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System ) Rules, 2021

3. This issues in consultation with of Ministry of Finance, Department of Expenditure vide ID Note No. 1(18)/EV/2024 dated 03.06.2025.

4. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.

(Dhrubajyoti Sengupta)
Joint Secretary to the Government of India

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This FAQ document is intended solely for informational and reference purposes, based on the PFRDA (Operationalisation of UPS under NPS) Regulations, 2025. While every effort has been made to ensure the accuracy of the information provided, this document should not be considered a legal interpretation or a substitute for the official regulations, circulars, or notifications issued by the Pension Fund Regulatory and Development Authority (PFRDA) or the Government of India.

Users are advised to refer to the relevant statutory documents and consult professional advisors for specific queries or decisions.

• Frequently Asked Questions (FAQs) – Unified Pension Scheme (UPS)
• FAQs related to Contributions under UPS
• FAQs related to Investment of Contributions
• FAQs related to Benefits under UPS
• FAQs related to operational issues on Payment of Benefits under UPS

Frequently Asked Questions (FAQs) – Unified Pension Scheme (UPS)

1. What is Unified Pension Scheme (UPS)?

The Unified Pension Scheme (UPS) is introduced by the Central Government as an option under the National Pension System (NPS) for Central Government employees with effect from 1st April 2025. The UPS provides assured pay-out based on the prescribed conditions.

2. Whether existing central government employee is eligible to opt for UPS?

Yes, an existing Central Government employee in service as of 1 April 2025, who are covered under National Pension System (NPS) is eligible to opt for UPS.

3. Whether newly recruited Central government employee is eligible to opt for UPS?

Yes, a newly recruited Central Government employees joining service on or after 1 April 2025 is eligible to opt for UPS.

4. Whether Central government employee retired prior to 31 March 2025 is eligible to opt for UPS?

Yes, a Central Government employee who was covered under NPS retired on or before 31st March 2025 and who meets prescribed conditions i.e.

(i) Who has superannuated after minimum 10 years of qualifying service or

(ii) Has retired under Fundamental Rules 56(j) (which is not treated as penalty under Central Civil Services (Classification, Control and Appeal) Rules, 1965), on or before 31st March 2025, or

(iii) The legally wedded spouse as on date of superannuation/retirement of deceased subscriber eligible under UPS.

5. What are the forms to be filled by eligible Central Government employee to opt for UPS?

6. From where the forms for enrollment under UPS can be obtained?

The forms A1, A2, along with the instructions and list of documents to be attached can be downloaded from the website of the Protean CRA at, www.npscra.nsdl.co.in/ups.php

7. What are timelines to exercise the option of UPS under NPS by an eligible existing (as on 31.03.2025) Central Govt employee?

Option has to be exercised within three (03) months from 1st April 2025, or within such extended timelines if any, allowed by the Central Government.

8. What are timelines to exercise the option of UPS under NPS by an eligible retired (as on 31.03.2025) Central Govt employee?

Option has to be exercised within three (03) months from 1st April 2025, or within such extended timelines if any, allowed by the Central Government.

9. What are timelines to exercise the option of UPS under NPS by the legally wedded spouse as on date of superannuation/retirement in case of a subscriber who has superannuated or retired and has demised prior to exercising the option for UPS.?

Option has to be exercised within three (03) months from 1st April 2025, or within such extended timelines if any, allowed by the Central Government.

10. What are timelines to exercise the option of UPS under NPS by new recruit to the Central Govt services joining on or after 1st April 2025?

Option has to be exercised within thirty (30) days from the date of joining Central Government services or within such extended timelines, if any, allowed by the Central Government.

11. Can the option of UPS be changed subsequently?

No, once exercised, the option to choose UPS is final and irrevocable.

12. What happens if the employee fails to opt for UPS within the specified time period?

An eligible person, who does not exercise the UPS option under NPS within the timelines laid down shall be deemed to have opted to continue under NPS without UPS option.

13. What is Permanent Retirement Account Number (PRAN) under UPS?

PRAN is a Permanent Retirement Account Number allocated to subscriber opening/opting for UPS, and under which all the transactions are recorded by the CRA system.

14. What are the proofs of Identity and address documents required in form for opening UPS account?

Identity and address proof are the key KYC documents. Any one of the following to be submitted:

15. Where the option form/ account opening forms under UPS is to be submitted by the subscriber?

The form can be submitted online or physically to the Head of Office / DDO where the subscriber is employed. Subscribers are advised to retain the acknowledgement slip signed/stamped by the designated respective nodal office where they submit the application

16. Whether there is online process for enrolment under UPS?

Yes, subscriber can submit their request for enrolment online by filing required forms through CRA website. Once it is submitted, the form goes to the DDO and then to PAO for verification.

17. What are the details to be filled by Nodal Office in the account opening form for UPS?

Employment Details (At the time of exercise of UPS option)

1. 1. Date of joining
   2. Date of Superannuation
   3. Date of commencement of qualifying service
   4. Employee Code/ID
   5. Basic Pay
   6. Pay Scale (Optional)
   7. Name of the office
   8. Department
   9. Ministry
   10. DDO Registration Number
   11. PAO / CDDO / Pr.AO Registration Number.

18. What is qualifying service under UPS?

Qualifying service shall be the completed months for which UPS subscriber has rendered regular services under the Central Government, determined by the Head of Office, in terms of Regulation 13 of the PFRDA (Operationalization of Unified Pension Scheme under National Pension System) Regulations, 2025.

19. Where the forms are to be submitted/processed by the nodal office?

Through the online system of the CRA.

20. How the subscriber can obtain the status of his/her application?

The Subscriber can obtain the status of his/her application from CRA and respective Nodal Office.

21. Will UPS subscribers still be able to open/ maintain/ hold voluntary NPS Tier-I/ II accounts?

Yes, subscribers of UPS can voluntarily maintain NPS Tier-I and Tier-II accounts under “All Citizen Model” along with UPS as a separate account within same PRAN number.

FAQs related to Contributions under UPS

22. How much is monthly contribution under UPS?

The monthly contribution of employee will be 10% of (basic pay + DA) along with matching contribution by employer, is to be credited to each employee’s PRAN through the concerned nodal office.

Further, an estimated 8.5%contribution towards Pool Corpus shall be paid by Central Government, on aggregate basis.

23. What will happen to my existing corpus on migration from NPS to UPS?

On migration from NPS to UPS, the corpus of the subscriber will get transferred to the PRAN tagged to UPS.

24. On migration from NPS to UPS, whether new PRAN will be issued?

On migration from NPS to UPS, the subscriber shall be identified by the erstwhile PRAN tagged to UPS.

25. What is Individual Corpus and Benchmark Corpus?

Individual Corpus means the value of corpus available in the PRAN of a subscriber under UPS.

Benchmark Corpus is a notional value computed by CRA for comparison with individual corpus. It is based on NAV of the default investment. (For more details, Regulation 12 and Illustrations in Schedules to the Regulations, may be referred).

26. What are the timelines to be followed by the govt nodal offices for processing and remittance of contributions under UPS?

27. What is Pool Corpus under UPS?

The government contributes an estimated 8.5% towards a Pool Corpus based on aggregate employee data.

The Pool Corpus shall comprise of: –

1. 1. additional Central Government contribution at an estimated eight and half percent of Basic Pay (including non-practicing allowance, wherever applicable) plus Dearness Allowance, on aggregate basis of all employees who have chosen the UPS option;
   2. transfer of balance from the individual corpus of a subscriber as per regulation 19 (3); and
   3. any other contribution defined by the Central Government.

28. How is the Pool Corpus managed?

The Pool Corpus shall be allocated to such pension fund(s) as determined by the Central Government, who shall invest the funds in accordance with the investment pattern and related aspects thereto, as approved by the Central Government.

FAQs related to Investment of Contributions

29. Can an employee select the pension fund and investment pattern under UPS?

Yes, employees can choose from registered pension funds and investment patterns, including default patterns defined by PFRDA.

30. What happens if an employee does not choose a pension fund?

In such cases, the employee will be assigned the default pension fund and investment pattern defined by PFRDA.

31. What are the options of investment choices for individual corpus other that default pattern?

1. Option to invest hundred percent of the funds in Government securities (Scheme G); or
2. Option of any one of the following Life Cycle based schemes:

(a) Conservative Life Cycle Fund with maximum exposure to equity capped at twenty- five percent. LC-25; or

(b) Moderate Life Cycle Fund with maximum exposure to equity capped at fifty percent. LC-50.

32. How many times the choice of pension fund and investment choice can be exercised in a financial year?

UPS Subscriber shall have an option to change

• • the choice of pension fund once in a financial year and
  • investment choice twice in a financial year.

33. How Benchmark Corpus is calculated?

Benchmark corpus shall be computed in the following manner:

(i) Partial withdrawals made out of individual corpus and voluntary contributions made into the individual corpus shall not be considered in the computation.

(ii) For contributions received prior to 1st April, 2025: monthly contributions shall be considered as and when they have been received and be valued on default pattern.

(iii) For contributions received on or after 1st April, 2025:

(a) monthly contributions which are to be received in that month, shall be considered as and when received during the month and valued on default pattern.

(b) In the event of any missing contribution in any month, value shall be based on the weighted average NAV of default pattern as on the last working day of the month applied to monthly contributions of previous full month.

(iv) Contributions arising from arrears, such as arrears of Dearness Allowance shall be considered and valued on the default pattern as and when they are received.

34. Will the subscriber be informed of corpus value updates?

Yes, CRA will provide details of the individual corpus and benchmark corpus in the PRAN account statement periodically.

FAQs related to Benefits under UPS

35. How is the assured payout calculated under UPS?

• The rate of full assured payout will be @50% of 12 monthly average basic pay, immediately prior to superannuation, payable after a minimum 25 years of qualifying service.
• In case of lesser qualifying service period, proportionate payout would be admissible.
• A minimum guaranteed payout of Rs. 10,000 per month shall be assured in case superannuation is after 10 years or more of qualifying service subject to timely and regular credit of contributions and no withdrawals.
• In cases of voluntary retirement after a minimum 25 years of qualifying service, assured payout will commence from the date on which the employee would have superannuated if he had continued in service.

Assured Payout = (½ of P) × (Q/300)

• P = Average of Basic Pay for the last 12 months before retirement.
• Q = Number of qualifying service months.

If Q is:

• Less than 120 months → UPS benefits do not apply.
• More than 300 months → Q is capped at 300 months.

36. When will the payout commence in case of voluntary retirement?

In cases of voluntary retirement after a minimum 25 years of qualifying service, assured payout will commence from the date on which the employee would have superannuated if he had continued in service.

37. What is the amount of minimum guaranteed payout under UPS?

A minimum guaranteed payout of Rs. 10,000 per month is guaranteed after completing 10 years of service.

38. Will the assured payout under UPS reduce in case of reduction in qualifying service?

Yes, in case of Qualifying service period of ten years or more, but less than twenty-five years, proportionate payout shall be payable.

39. Under what conditions shall the assured payout reduce?

Assured payout shall be proportionately reduced in any or both of the following cases –

a) Individual corpus is less than the benchmark corpus as on the date of superannuation or voluntary retirement or retirement under Fundamental Rules 56(j), as may be applicable;

b) Final withdrawal not exceeding sixty percent of the individual corpus, as opted by a subscriber. The assured payout so proportionately reduced shall be payable as admissible payout.

40. What is Admissible Payout?

The assured payout so proportionately reduced shall be payable as admissible payout. The formula for calculating admissible payout is as under:

Admissible Payout = Assured Payout x IC/BC x (1-FW%), where, IC= value of Individual
Corpus, BC= value of Benchmark Corpus, with condition of IC ≤ BC

FW= Final withdrawal in percentage points (maximum upto sixty percent of IC or BC, whichever is lower).

41. What is Family Payout under UPS?

Upon demise of a UPS Subscriber who was receiving admissible payout or top-up amount, as the case may be, the legally wedded spouse as on date of superannuation/retirement of such deceased subscriber shall receive for life, family pay out of sixty percent of the amount of the admissible payout or top-up amount drawn by the subscriber immediately prior to the demise.

42. Subscriber who was eligible to receive UPS benefits but has not claimed any benefits prior to demise, whether spouse of such deceased UPS subscriber is eligible to receive UPS benefits?

Yes, the legally wedded spouse shall be eligible to receive the benefits payable to deceased subscriber till the date of his/her demise. Thereafter, the spouse shall be eligible for family pay out of sixty percent of the amount eligible to be received by such subscriber immediately prior to the demise.

43. What are the benefits available under UPS, to superannuated or retired employees covered under National Pension System on or before 31st March 2025?

Employee who complies with the requirements under regulation 4 and regulation 19 shall be eligible to receive the following benefits –

a) lumpsum payment;

b) monthly top-up amounts payable immediately after the date of superannuation or retirement;

c) applicable dearness relief; and

d) simple interest as per applicable Public Provident Fund rates on arrears with respect to above benefits for the past period from the month after superannuation up to the month preceding the submission of claim forms.

Further, no interest shall be payable for the period beyond the last date of submission of option or claim as per clause (ii) of regulation 3.

The benefits specified under sub-regulation (1) shall be in addition to the benefits availed or accrued to such employee under NPS including annuity, if any under NPS.

44. How the monthly top-up amount is calculated for employees already retired on or before 31st March 2025 and receiving annuity under NPS?

Such employees will receive monthly top-up amount, which will be calculated as follows: Monthly top-up = (Admissible Payout + Dearness Relief on Admissible Payout)- Representative Annuity amount

45. What is Representative Annuity rate & amount?

Representative Annuity rates for the period from January 2014 to March 2025 are provided under Schedule VI of PFRDA (Operationalization of Unified Pension Scheme under National Pension System) Regulations, 2025.

Representative annuity amount= (IC) x (1-FW%) *(Representative Annuity Rate)/ (12*100). In case IC is greater than BC, IC shall be taken as equal to BC.

46. What benefits available and when payable under UPS to subscriber/Spouse?

Table- 1 (UPS subscriber who superannuated/retired on or before 31/03/2025)

Table- 2 (UPS subscriber who superannuated/retired on or after 01/04/2025)

47. Who are eligible to receive assured payouts under UPS?

Assured Payout shall be available only in the following cases, namely: –

(a) In case of an employee superannuating after qualifying service of 10 years, from the date of superannuation;

(b) In case of the Government retiring an employee under the provisions of FR 56 (j) (which is not a penalty under Central Civil Services (Classification, Control and Appeal) Rules, 1965) from the date of such retirement; and

(c) In case of voluntary retirement after a minimum qualifying service period of 25 years, from the date such employee would have superannuated, if the service period had continued to superannuation.

48. Who can claim family payout under UPS?

Only the legally wedded spouse as on date of superannuation/retirement of the deceased UPS subscriber whose name appears as such in the service records as on the date of superannuation or voluntary retirement or retirement under Fundamental Rules 56(j), as may be applicable, and who is surviving the deceased subscriber is eligible for claiming family payout under UPS.

49. Whether the spouse of the subscriber married after the date of superannuation, is eligible for family payout?

No, only the legally wedded spouse as on date of superannuation/retirement is eligible for family payout.

50. Is there any provision for lump-sum payment under UPS?

Yes, a lump-sum amount equivalent to one-tenth of the last drawn basic pay (plus NPA and DA) is paid for every completed 6-month period of qualifying service.

Lumpsum Payment = (E/10) x L, where; Emoluments (E) = {Basic Pay (including non-practicing allowance, if applicable) + DA}

Length of service (L) = number of completed six months of qualifying service as certified by Head of Office.

Explanation: For the purpose of calculation of every completed six months of qualifying service, any period less than six months shall not be considered.

51. Is there any option to withdraw an amount under UPS at the time of retirement and to what extent?

Yes, UPS Subscriber shall have an option of final withdrawal for an amount not exceeding sixty percent (60%) of the individual corpus or benchmark corpus, whichever is lower, available in the PRAN tagged to UPS as on the date of superannuation or voluntary retirement or retirement, subject to proportionate reduction in the assured payout payable to such UPS Subscriber.

52. What and how much is final withdrawal percentage?

UPS Subscriber shall also have an option to withdraw an amount not exceeding sixty percentage of the individual corpus or benchmark corpus, whichever is lower, available in the PRAN tagged to UPS as on the date of superannuation or voluntary retirement or retirement under Fundamental Rules 56(j), as may be applicable subject to proportionate reduction in the assured payout payable to such UPS Subscriber.

53. How the final withdrawal amount shall be calculated in case Individual Corpus is more than the benchmark corpus?

Final withdrawal of up to 60% of the individual corpus or benchmark corpus (whichever is lower) is allowed as on date of Superannuation or Voluntary retirement or retirement under 56(j).

54. When will final withdrawal be admissible?

Such final withdrawal shall be admissible on the date of superannuation or voluntary retirement or retirement under Fundamental Rules 56(j).

55. How is Dearness Relief applied under UPS?

Dearness Relief as declared by the Central Government from time to time, will be applicable on admissible payout and family payout. Dearness Relief shall be payable only when admissible payout commences.

56. Whether benefits under UPS are receivable if the employee has been removed or dismissed or has resigned from the service?

No, Assured Payout shall not be available in case of removal or dismissal from service or resignation of the employee. In such cases, the Unified Pension Scheme option shall not apply.

57. Can a subscriber make partial withdrawals during the service period?

Yes, partial withdrawals up to 25% of self-contribution (excluding returns) are allowed after completion of lock-in period of three years from the date of enrolment under UPS or NPS whichever is earlier, for specified purposes.

58. What purposes are allowed for partial withdrawal under UPS?

Higher education of children, marriage of children, purchase/construction of residential house, medical emergencies, disability-related expenses, and skill development.

59. How many times can partial withdrawals be made under UPS?

A maximum of three times, including withdrawals made under NPS before opting for UPS.

60. Is there any option to replenish the partial withdrawal made under UPS?

Yes, the subscriber has the option to replenish the partially withdrawn amount before retirement.

FAQs related to operational issues on Payment of Benefits under UPS

61. How are UPS benefits claimed after retirement/death of the subscriber?

The subscriber or legally wedded spouse as on date of superannuation/retirement of the subscriber, as the case may be, must submit the relevant application forms to the Head of Office or DDO.

62. What is UPS Payout Order (UPO)?

The UPS Payout order contains the details of the benefits payable to a UPS Subscriber.

63. Who will authorize UPS payout order?

The UPO shall be authorized by the respective PAO and sent to the National Pension System Trust through CRA.

A copy of such UPS Payout Order shall simultaneously be made available to the UPS Subscriber or the legally wedded spouse as on date of superannuation/retirement, as the case may be.

a) Upon receipt of UPS Payout Order by National Pension System Trust together with option of final withdrawal if any by the UPS subscriber, the National Pension System Trust shall authorize the release of UPS benefits as specified under these regulations and authorise the transfer of the balance in the individual corpus to pool corpus.

b) The National Pension System Trust shall ensure payment of monthly payout from the Pool Corpus to the bank account of the UPS subscriber and periodic release of applicable dearness relief. For this purpose, CRA shall intimate to the pension fund to effect redemption from the Pool Corpus for payment of such payout to the subscriber.

64. What details are covered in UPS Payout Order (UPO)?

a) requisite details of UPS Subscriber including particulars of legally wedded spouse as on date of superannuation/retirement of such subscriber as appearing in the service records,

b) the period of qualifying service;

c) Details of joint bank account of the UPS Subscriber and legally wedded spouse as on date of superannuation/retirement;

d) Percentage of final withdrawal upto sixty percent of individual corpus or benchmark corpus, whichever is lower, as opted by UPS Subscriber;

e) Details of benefits applicable under UPS as specified under these regulations, such as:

1. 1. lumpsum payment;
   2. excess, if any, of individual corpus vis-à-vis benchmark corpus
   3. assured payout;
   4. admissible payout;
   5. Top-up amount (applicable for retirees on or after 31.03.2025)
   6. family payout;
   7. applicable dearness relief.

f) the date of commencement of admissible payout to subscriber.

65. How UPS Payout Order and monthly payouts shall be processed?

NPS Trust shall authorize release of benefits upon receipt of UPS Payout Order.

Further, the NPS Trust shall ensure payment of monthly payout from the Pool Corpus to the bank account of the UPS Subscriber and periodic release of applicable dearness relief.

66. What is the role of nodal offices and the CRA in processing of claims under UPS?

a) The CRA shall make available the details of partial withdrawals made if any, by superannuated or retired employee, and value of individual corpus and benchmark corpus as on the date of superannuation or retirement to DDO and PAO in their CRA system login.

b) The DDO shall update the records in CRA system after obtaining necessary details, if required from Head of Office and forward the same to PAO for its authorization in such system.

c) Based on the verification of subscriber details by Head of Office, the PAO shall issue a UPS Payout order, as per Form B1, B3 or B5, as applicable, containing details as specified under regulation 20.

d) Upon receipt of UPS Payout Order by National Pension System Trust together with option of final withdrawal if any by the UPS subscriber, the National Pension System Trust shall authorise the release of UPS benefits as specified under these regulations and authorise the transfer of the balance in the individual corpus to pool corpus.

The National Pension System Trust shall ensure payment of monthly payout from the Pool Corpus to the bank account of the UPS subscriber and periodic release of applicable dearness relief. For this purpose, CRA shall intimate to the pension fund to effect redemption from the Pool Corpus for payment of such payout to the subscriber.

Download Unified Pension Scheme (UPS) FAQ 2025 PDF

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INDIAN RAILWAYS TECHNICAL SUPERVISORS’ ASSOCIATION

No:IRTSA/Memo-32

Date:18.11.2024

Hon’ble Minister for Finance
Government of India

Hon’ble Minister for Railways
Government of India

Respected Madam/Sir,

Sub: Restoration on Old Pension Scheme (OPS) for all Central Government Employees.

1) IRTSA brings to your kind notice on the concerns of the Central Government Employees in getting stability, dignity and financial security after their retirement which should be equal for all pensioners and family pensioners in the form of Old Pension Scheme (OPS).

2) The Unified Pension Scheme (UPS) will be implemented from 1st April 2025 and is expected to cover 23 lakh Central Government employees. Government says UPS will provide stability, dignity and financial security for government employees and their family post-retirement, ensuring their well-being and a secure future. But all these objectives of UPS will not satisfy the basic principle of “Equal Pay for Equal Work” since pension is a deferred wage.

3) In the past on many occasions, judgements of the Hon’ble Supreme Court of India strongly recommended pension payment practice. The Supreme Court held that pension is a valuable right vested on Government employees. Refusal, reduction, forfeiture of pension not allowed unless on extreme conditions.

4) 5th Pay Commission in para 127.6 of its report said that, “It needs to be averted emphatically that pension is not in the nature of alms being doled out to beggars. The senior citizens need to be treated with dignity and courtesy benefited their age. Pension is statutory, inalienable, legally enforceable right and the sweet of their brow has earned it. As such it should be fixed, revised, modified and changed in ways not entirely dissimilar to the salaries granted to Government employees”.

5) UPS assures 50% pension after completing 25 years of service, minimum pension of Rs.10,000 for 10 years of service, 60% of pension as family pension and pension, family pension & minimum pension under UPS are made inflation proof. Still there are crucial short comings of UPS compared to OPS which are listed below,

• a) 50% Pension eligible on completion of 25 years, instead of 20 years in OPS. In OPS, rule 39 of CCS (Pension) Rules 2021 permits pension for Central Government employees retiring before completing 10 years of qualifying service.
• b) Employees continue to contribute monthly 10% of basic pay + DA. Employee will not get return proportionate to his contribution except lump sum equal to 1/10th of last drawn monthly pay for every six months of completed service.
• c) Inflation protection – Provides inflation protection by adjusting pensions based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW). It is doubted that proposed DR may start from zero on 01.04.2025.
• d) Commutation of pension and restoration of full pension not available in UPS.
• e) Additional pension/family pension 20%, 30%, 40%, 50% and 100% after attaining the age 80, 85, 90, 95 and 100 years respectively available in OPS is not available in UPS.
• f) Lump sum amount provided to employees in UPS upon superannuation, which is 1/10th of their last drawn monthly pay for every six months of completed service is very meagre compared with monthly contribution of 10% of basic pay + DA by employee.
• g) If an employee takes voluntary retirement after completion of 25 years of service, he will be eligible to receive his pension only at superannuation age.

6) There are three different types of pensions ie, OPS, NPS and UPS with different benefits extended to Central Government employees working in same post discharging same duties and responsibilities. Comparison of UPS, NPS and OPS is given in annexure.

7) This is in violation of Articles 14 & 16 of constitution of India. Article-14 on Equality before law says that “the State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India”. Article-16 on equality of opportunity in matters of public employment says that “there shall be equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State”.

8) It is therefore requested that, all central Government employees may please be covered under OPS to maintain equality among employees and to provide stability, dignity and financial security after their retirement.

Thanking you, with regards,

Yours’ truly

K.V. RAMESH
General Secretary, IRTSA

Annexure

Comparison of UPS, NPS and OPS

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“Prime Minister Narendra Modi’s Vision Realized: Single Form to Simplify Pension Process for Elderly” says Dr. Jitendra Singh

Department of Pension adds another feather in the cap with a series of reforms such as Digital Life certificates, Pension Adalat, Anubhav Awards, PRE- retirement counselling workshops: Dr Singh

In a significant move aimed at enhancing the ease of living for senior citizens and pensioners across the nation, Union Minister Dr. Jitendra Singh today announced the launch of a single unified form, merging nine separate forms into one “Form 6-A’ and integration of e-HRMS with Bhavishya today at National Media Centre, New Delhi.

This initiative reflects Prime Minister Narendra Modi’s commitment to simplifying processes for senior citizens, enabling them to contribute effectively to the vision of a “Viksit Bharat” by preserving their energies and expertise while saving their valuable time.

Union Minister of State (Independent Charge) for Science and Technology, Minister of State (Independent Charge) for Earth Sciences, MoS PMO, Department of Atomic Energy and Department of Space, MoS Personnel, Public Grievances and Pensions, Dr. Jitendra Singh, emphasized the importance of this reform, stating, “The launch of the ‘Single Simplified Pension Application Form and Digital Integration of Bhavishya with e-HRMS’ is another milestone and a feather in the cap of the Department of Pension, which has consistently introduced reforms to improve the lives of our senior citizens.

Minister of State, Ministry of Personnel, Public Grievances and Pensions Dr. Jitendra Singh congratulated both the departments for these joint efforts in order to realize PM Modi’s priority and welfare of Senior citizens. The Department of Pension has been at the forefront of introducing several landmark reforms over the years, including the Digital Life Certificates, Pension Adalats, Anubhav Awards, and Pre-Retirement Counseling Workshops. These initiatives have been instrumental in ensuring transparency, efficiency, and a seamless experience for pensioners across the country.

The Minister recalled the special campaign for family pension grievances and shared that it has crossed the mark of 96% redressal rate including resolution of several long pending cases of dependent minor children, divyang daughters, widow/divorced daughters, dependent mothers and widows of war veterans.

Explaining the details the minister said “The retiring officials, who are on e-HRMS, will fill Form 6-A through e-HRMS (only Superannuation cases) and the retiring officials, who are not on e-HRMS, will fill Form 6-A in Bhavishya. He also added that Form submission by the Pensioner with single e-Sign (Aadhaar based OTP) will be enough.

Dr. Jitendra Singh also released Gazette Notification of New Single Pension Application Form: A vital step towards Ease of Living for retiring officials along with Compendium of Pension related Instructions.

The Department of Pension & Pensioners’ Welfare has developed an “Integrated Pensioners’ Portal” using Bhavishya platform as the base to provide a Common Single Window Portal for pensioners and elderly citizens. The State Bank of India, Canara Bank, Punjab National Bank, Bank of Baroda, Bank of India and Union Bank of India are already integrated their Pension Portals with the Integrated Pensioners’ Portal.

Today Dr Jitendra Singh launched integration of Central Bank of India Pension Portal with Bhavishya. Presently, 4 facilities viz. Monthly Pension Slip, Status of Life Certificate, Submission Form 16 of the pensioner and Due & Drawn Statement of pension arrears paid, are being provided by these Banks. The goal is to integrate all Pension Disbursing Banks with this portal for a unified user experience.

According to Dr. Singh, the newly launched unified form is designed to streamline the process for pensioners, reducing the complexity of handling multiple forms and significantly cutting down on the time and effort required. This user-friendly approach is expected to benefit millions of senior citizens, enabling them to manage their pension-related matters with greater ease and convenience.

Dr. Jitendra Singh said “Government remains committed to its vision of empowering senior citizens and harnessing their wisdom and experience for the development of the nation. This latest initiative is a testament to the continued efforts to simplify and improve the systems that directly impact the lives of our elderly population.”

Shri.V Srinivas, Secretary, DoPPW; Sh. Vivek Joshi, Secretary, DoPT, Shankari Murali, Addl CGA; Sh. Dhirendra Ojha, Pr. DG, PIB, Shri Dhrubajyoti Sengupta, Joint Secretary (Pensions) and Sh. M V Rao, MD & CEO, Central Bank of India were present for the launch ceremony.

PIB

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Cabinet

Cabinet approves Unified Pension Scheme

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the Unified Pension Scheme (UPS).

The salient features of the UPS are:

1. Assured pension: 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period upto a minimum of 10 years of service.
2. Assured family pension: @60% of pension of the employee immediately before her/his demise.
3. Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.
4. Inflation indexation: on assured pension, on assured family pension and assured minimum pension
   
   Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees
   
   
5. lump sum payment at superannuation in addition to gratuity

1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service this payment will not reduce the quantum of assured pension

PIB

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