Section 12 of The Unified Pension Scheme: Benchmark Corpus
Benchmark Corpus Unified Pension Scheme
(1) For each employee covered under NPS, who has exercised the UPS option, a benchmark
corpus value shall be computed by CRA for comparison with individual corpus based on the following assumptions:
(i)
regular and timely receipt of applicable contributions of both, employer and employee, for each month of
qualifying service, as specified under sub-regulation (1) and (2) of regulation 6;
(ii)
contributions being invested as per default pattern determined by the Authority;
(iii)
(iv)
(v)
no partial withdrawals made during accumulation phase;
any voluntary contributions made shall not be considered; and
any contributions for the period before the commencement of the qualifying service under the Central
Government shall not be considered.
(2) The Benchmark Corpus value shall be based on the net asset value (NAV) of the default pattern, and corresponding
units in the benchmark corpus. In respect of missing contribution(s), for any period, the net asset value shall be based on
last working day of the month in which contribution(s)is to be received, for the period from 01st April 2025 and the same
shall be declared for each month by the Authority.
(3) Where UPS Default Pattern is managed by more than one pension fund, the weighted average NAV shall be considered
based on the ratio of the monthly average asset under management (AAUM) of UPS scheme managed by the pension
fund to the total AAUM of UPS Default pattern managed by such multiple pension funds. The formula for calculating
the weighted average NAV is as under: The NAV computed using the above-mentioned methodology for the past period is provided under Schedule II. (4) 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.
(5) Illustrative examples as to working of benchmark corpus under different scenarios are provided under Schedule III.