The Unified Pension Scheme (UPS) is an option under the National Pension System (NPS) for central government employees. It promises an assured monthly payout of 50% of the average of the last 12 months of basic pay for staff with at least 25 years of qualifying service, with a guaranteed floor of Rs 10,000 a month for those with 10 or more years. This guide explains who UPS covers, how the assured pension is calculated, the family payout on death, and the important fact that the one-time NPS-to-UPS option window closed on 30 November 2025 and has not been reopened.
Quick answer: UPS gives eligible central government employees an assured pension of 50% of their last 12 months average basic pay after 25 years of qualifying service, with a Rs 10,000 minimum for 10-plus years and a 60% family payout to the spouse. The window for existing NPS subscribers to opt into UPS closed on 30 November 2025; those who did not opt remain in NPS by default, and fresh recruits are enrolled going forward.
UPS is a defined-benefit style option built inside the contributory NPS framework, operationalised from 1 April 2025 through the Pension Fund Regulatory and Development Authority. Unlike standard NPS, where the pension depends on market returns, UPS guarantees a fixed assured payout linked to final basic pay and length of service.
UPS is governed by the PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025, notified by the Pension Fund Regulatory and Development Authority (PFRDA) on 19 March 2025, with policy issued by the Department of Financial Services, Ministry of Finance. UPS is not a separate scheme that replaces NPS; it is an option exercised within NPS, which is why a subscriber who never opted continues under the ordinary NPS rules.
UPS was opened to three groups of central government employees covered by NPS:
A minimum of 10 years of qualifying service is needed to draw any assured payout. State government employees are not automatically covered; this depends on the state issuing its own notification.
The assured payout is built around final basic pay and the length of qualifying service. The core formula notified by PFRDA is:
Assured payout = (1/2 of P) x (Q / 300)
where P is the average of the last 12 months of basic pay immediately before superannuation, and Q is the number of completed months of qualifying service, capped at 300 months (25 years).
Worked example. If the average of the last 12 months of basic pay is Rs 80,000 and the employee has completed 300 months (25 years), the payout is (1/2 x 80,000) x (300/300) = Rs 40,000 a month, that is 50% of basic pay. At only 180 months (15 years) it would be (1/2 x 80,000) x (180/300) = Rs 24,000 a month.
A minimum assured payout of Rs 10,000 a month applies to anyone with at least 10 years of qualifying service, even if the formula gives less. The 50% is computed on basic pay, not basic plus dearness allowance; Dearness Relief is then added on top of the payout, so the pension keeps pace with inflation.
On the death of a subscriber who was drawing the assured payout, the legally wedded spouse receives 60% of the payout the subscriber was drawing immediately before death. Dearness Relief applies to this family payout as well. For instance, a Rs 50,000 assured payout would translate into a family payout of Rs 30,000 a month for the surviving spouse, before adding applicable Dearness Relief.
UPS is contributory. The employee contributes 10% of basic pay plus dearness allowance, the same rate as NPS. The government contributes 18.5%: a 10% matching contribution credited to the individual corpus, and an estimated additional 8.5% (on an aggregate basis) paid into a separate pooled corpus that backs the assured payouts. This pooled corpus is not credited to an individual PRAN account.
UPS at a glance
① Assured payout: 50% of last 12 months average basic pay for 25-plus years of service
② Minimum payout: Rs 10,000 a month for 10-plus years of service
③ Family payout: 60% of the subscriber payout to the legally wedded spouse
④ Funding: Employee 10%, government 18.5%, plus Dearness Relief on the pension
This is the part most readers get wrong. The one-time option for existing NPS subscribers and eligible past retirees to switch into UPS was not left open indefinitely.
The practical effect: employees who did not exercise the option by 30 November 2025 remain in standard NPS by default, with no notified mechanism for a belated or corrective application. New recruits joining on or after 1 April 2025 exercise their own UPS option within the prescribed window. Some media reports speculated about a further extension to 31 March 2026, but this is unconfirmed reporting only and no PFRDA or Department of Financial Services order to that effect has been issued. Always check the PFRDA UPS page for the current position.
To understand how UPS differs from the older defined-benefit pension and from plain NPS, see our comparison of the Old Pension Scheme versus NPS.
If your department has not confirmed whether your UPS option was recorded, or you want your service and contribution details, you can file a Right to Information request with the Public Information Officer of your office or pay-and-accounts unit. The AI RTI Drafter helps draft a clean application, and the First Appeal Builder helps if no reply arrives within the statutory time. For a fuller walkthrough, The RTI Playbook is a practical starting point.
Central government employees covered by NPS who were in service as on 1 April 2025, new recruits joining on or after that date, and eligible past retirees who left service by 31 March 2025. A minimum of 10 years of qualifying service is needed to draw any assured payout. State employees are covered only if their state notifies UPS.
The payout is (1/2 of P) multiplied by (Q divided by 300), where P is the average of the last 12 months of basic pay and Q is completed months of qualifying service capped at 300. At 25 years or more you get the full 50% of average basic pay; between 10 and 25 years the amount is proportionate.
A minimum assured payout of Rs 10,000 a month applies to anyone with at least 10 years of qualifying service, even if the formula produces a smaller figure. Dearness Relief is added on top, as notified by the government.
The legally wedded spouse receives 60% of the payout the subscriber was drawing immediately before death, plus applicable Dearness Relief. A Rs 50,000 assured payout would give the spouse a family payout of Rs 30,000 a month before Dearness Relief.
No. The one-time option window for existing NPS subscribers closed on 30 November 2025 and has not been officially reopened as of June 2026. Those who did not opt remain in NPS by default. Unconfirmed media reports of a possible extension to 31 March 2026 are not backed by any PFRDA or government order, so verify on the PFRDA UPS page before acting.