The UPS benefits are over and above the existing NPS payouts. These include a one-time lump sum payment, monthly top-up pension, and interest on arrears.
Under the scheme, retirees will receive a lump sum equal to one-tenth of their last drawn basic pay plus dearness allowance for every completed six months of qualifying service. The scheme covers superannuation, voluntary retirement, and retirement under FR 56(j).
If the monthly NPS annuity is lower than the guaranteed pension under UPS, the government will pay a monthly top-up amount to bridge the difference. Additionally, retirees can claim arrears with simple interest calculated at Public Provident Fund (PPF) rates.
The Central government introduced UPS from April 1, 2025. The scheme aims to provide pension certainty by guaranteeing a fixed pension, addressing the variable nature of NPS payouts. For those with 25 or more years of qualifying service, UPS guarantees 50% of the average basic pay over the last 12 months of service as pension.
Eligible retirees or their spouses can apply for UPS benefits offline or online by June 30, 2025. Offline applicants must submit the prescribed forms (Form B2 for subscribers and Form B4/B6 for spouses) to the Drawing and Disbursing Officer (DDO) of their last office. These forms are available at the official NPS website: www.npscra.nsdl.co.in/ups.php.
Online applications can also be submitted through the same portal.
The Pension Fund Regulatory and Development Authority (PFRDA) notified UPS Regulations, 2025, on March 19, 2025, detailing the eligibility and benefit claims process. PFRDA is conducting webinars to guide retirees and stakeholders.
First Published: May 30, 2025 3:56 PM IST
