Section 15 of The Unified Pension Scheme: Payout under UPS.
Payout under UPS. Unified Pension Scheme
15. Payout under UPS. -(1) Payout shall be computed and payable as applicable, in the following manner:
(i) Assured payout: Assured payout shall be payable at fifty-percent. of the average of the last twelve months Basic Pay
(as certified by Head of Office) immediately prior to the date of superannuation or voluntary retirement or retirement
under Fundamental Rules 56(j) (which is not treated as penalty under Central Civil Services (Classification, Control and
Appeal) Rules, 1965), as may be applicable, subject to completion of minimum twenty-five years of qualifying services
by a UPS subscriber, computed as per regulation 13.The formula for calculating assured payout is as under:
Assured Payout (A) = (½ of P) x (Q/300)
Where:
P = average of Basic Pay for last twelve months, as certified by the Head of Office, from the date of superannuation
or voluntary retirement or retirement under Fundamental Rules 56(j) (which is not treated as penalty
under Central Civil Services (Classification, Control and Appeal) Rules, 1965), as may be applicable
Q = months of qualifying service as certified by the Head of Office
(Provided where Q is –
Less than 120, UPS shall not be applicable
More than 300, then Q shall be taken as 300)
(ii) Minimum Guaranteed Payout: The minimum guaranteed payout under UPS shall be Rupees Ten Thousand per
month subject to completion of minimum ten years of qualifying services by a UPS subscriber. The formula for calculation
of Minimum guaranteed payout:
If (½ of P) x (Q/300) < 10,000, and:
Q is more than or equal to 120
Then Minimum guaranteed payout shall be Rs. 10,000/-
(iii) Proportionate Payout: In case of Qualifying service period of ten years or more, but less than twenty-five years,
proportionate payout shall be payable.
(iv) Admissible Payout: Assured payout shall be proportionately reduced in any or both of the following cases –
(a) Individual corpus is less than the benchmark corpus as on the date of superannuation or voluntary retirement or
retirement under Fundamental Rules 56(j) (which is not treated as penalty under Central Civil Services (Classification,
Control and Appeal) Rules, 1965), as may be applicable;
(b) Final withdrawal not exceeding sixty percent. of the individual corpus, as opted by a subscriber.
The assured payout so proportionately reduced shall be payable as admissible payout. The formula for calculating
admissible payout is as under:
Admissible Payout = Assured Payout x IC/BC x (1-FW%)
Where,
IC= value of Individual Corpus
BC= value of Benchmark Corpus
with condition of IC ≤ BC
FW= Final withdrawal in percentage points (maximum upto sixty percent of Individual Corpus or Benchmark Corpus,
whichever is lower). Provided that if the individual corpus is less than benchmark corpus, UPS Subscriber shall have a choice to replenish the
shortfall at any point of time before or on superannuation or voluntary retirement or retirement under Fundamental Rules
56(j) (which is not treated as penalty under Central Civil Services (Classification, Control and Appeal) Rules, 1965), as
may be applicable.
Illustrative examples as to working of admissible payout under different scenarios are provided under Schedule V. (2) Final Withdrawal Percentage:(i) UPS Subscriber or the legally wedded spouse, as the case may be, shall also have
an option to withdraw an amount not exceeding sixty percent. of the individual corpus or benchmark corpus, whichever
is lower, available in the PRAN tagged to UPS as on the date of superannuation or voluntary retirement or retirement
under Fundamental Rules 56(j) (which is not treated as penalty under Central Civil Services (Classification, Control and
Appeal) Rules, 1965), as may be applicable, subject to proportionate reduction in the assured payout payable to such UPS
Subscriber.
Provided that in case the individual corpus is more than the benchmark corpus as on the date of superannuation or
voluntary retirement or retirement under Fundamental Rules 56(j) (which is not treated as penalty under Central Civil
Services (Classification, Control and Appeal) Rules, 1965), as may be applicable, the final withdrawal amount shall be
calculated on the benchmark Corpus and the excess amount in the individual corpus shall be credited to the designated
bank account of the UPS Subscriber.
(ii) Such final withdrawal shall be admissible on the date of superannuation or voluntary retirement or retirement under
Fundamental Rules 56(j) (which is not treated as penalty under Central Civil Services (Classification, Control and Appeal)
Rules, 1965), as may be applicable.