Section 6 of The Unified Pension Scheme
(1) The monthly contribution of the UPS Subscriber shall be ten percent. of the basic pay
(including non-practising allowance, where applicable) and dearness allowance thereon, which shall be credited to the individual PRAN of UPS Subscriber.
(2) The monthly contribution of the UPS Subscriber shall be matched by the Central Government by crediting an equal amount, to the individual PRAN of the UPS subscriber.
(3) The DDO shall deduct the contribution from the salary of the Central Government employee and send the bill to the PAO or Cheque Drawing and Disbursing Officer (CDDO) as the case maybe along with the details of contribution deducted in respect of each UPS Subscriber on or before the twentieth day of each month.
(4) The PAO or the CDDO as the case may be shall, based on the details of contributions in respect of each UPS Subscriber sent by DDO to PAO or CDDO, prepare and upload a Subscriber Contribution File (SCF) and generate transaction ID in the system of the CRA, on or before the twenty fifth day of each month.
(5) The PAO or the CDDO as the case may be, shall remit the employee contribution and matching co-contribution by the Central Government to the trustee bank through the accredited bank by the last working day of each month.
Provided that the contribution for the month of March shall be remitted by the PAO or CDDO to the trustee bank through the accredited bank on the first working day of the month of April.
Provided further that in respect of an employee who has subscribed to NPS as on 31st March 2025, and has opted for UPS, the first contribution under UPS of such subscriber shall be credited in the month following exercise of choice by such subscriber.
Provided further that the first contribution of a newly recruited Central Government employee shall be credited to the individual PRAN within twenty days from the date of submission of application or by the last date of the month, in which the Central Government employee joined, whichever is later.
Section 7 of The Unified Pension Scheme
(1) The Pool Corpus shall comprise of: –
(i) additional Central Government contribution at an estimated eight and half percent. of Basic Pay (including non practising allowance, wherever applicable) plus Dearness Allowance, on aggregate basis of all employees who have chosen the UPS option;
(ii) transfer of balance from the individual corpus of a subscriber as per regulation 19 (3); and
(iii) any other contribution defined by the Central Government.
(2) The Pool Corpus shall be managed by the pension fund(s), in accordance with the instructions of the Central Government as specified under regulation 10 and such other directions as may be issued by the Authority in that behalf.
Section 8 of The Unified Pension Scheme
(1) The UPS, being a ‘fund-based’ system, relies on the regular and timely accumulation and investment of applicable contributions (from both the employee and the employer) for assured payout to the employees post superannuation or retirement, as the case may be.
(2) The assurance of timely and regular payout of benefits under UPS shall depend upon adequacy of funds under individual and pool corpus.