The Unified Pension Scheme (UPS) is set to launch on April 1, 2025, providing a guaranteed pension for government employees. Unlike the National Pension System (NPS), which depends on market performance, the UPS ensures a fixed monthly payout.

🔹 Key Highlights of UPS

✔ Fixed Monthly Pension – Employees will receive a minimum assured pension of ₹10,000 per month, eliminating stock market dependency.

✔ One-Time Choice – If an employee opts for UPS instead of NPS, they cannot switch back to NPS later.

✔ Formula-Based Calculation – Pension will be calculated using a specific formula based on basic pay and years of service.

📊 How is the Pension Calculated?

The UPS pension formula is:

Pension = 50% of (Average Basic Pay for Last 12 Months)

📌 For employees with 25+ years of service:
✅ If the last 12 months' average basic pay is ₹1,00,000, the pension will be:
50% of ₹1,00,000 = ₹50,000 per month

📌 For employees with less than 25 years of service:
✅ If an employee retires after 20 years, the pension is calculated proportionally:
50% × ₹1,00,000 × (20/25) = ₹40,000 per month

📌 For minimum guaranteed pension:
✅ If an employee’s basic pay results in a pension below ₹10,000, they will still receive the assured ₹10,000 per month.

📢 What Employees Should Know?

• UPS replaces NPS for those who opt in – Once chosen, switching back is not allowed.
• Pension is fixed and market-independent, providing financial stability.
• The new system benefits employees with a predictable payout, ensuring a secure post-retirement income.

With UPS rolling out from April 1, 2025, employees should carefully evaluate their options and choose the scheme that best suits their financial goals.

💬 Planning to switch to UPS? Share your thoughts below! 👇