Section 22 of The Unified Pension Scheme: Payment of benefits to Superannuated or Retired Employees under National Pension System
Payment of benefits to Superannuated or Retired Employees under National Pension System Unified Pension Scheme
22. Payment of benefits to Superannuated or Retired Employees under National Pension System. – (1) In respect
of superannuated or retired employee under NPS on or before 31st March 2025, and who has complied with the
requirements under regulation 4 and regulation 19 shall be eligible to receive the following benefits –
(i) lumpsum payment;
(ii) monthly top-up amounts due immediately after the date of superannuation or retirement;
(iii) applicable dearness relief; and
(iv) simple interest as per applicable Public Provident Fund rates on arrears with respect to above benefits for
the past period from the month after superannuation up to the month preceding the submission of claim forms.
Provided that no interest shall be payable for the period beyond the last date of submission of option or claim as per clause
(ii) of regulation 3.
(2) The benefits specified under sub-regulation (1) shall be in addition to the benefits availed or accrued to such employee
under NPS including annuity, if any under NPS.
(3) The monthly top-up amount admissible to a person shall be the sum of admissible payout and Dearness Relief thereon
less the applicable representative annuity amount for such person computed under this regulation. The computation of
representative annuity amount for such person shall be based on the annuity rate declared by the Authority, utilising such
percentage of the individual corpus under NPS Tier I annuitized at the time of exit from NPS. The representative annuity
rates for the period from January 2014 to March 2025 are provided in Schedule VI. (4) The formula for computing monthly top-up amount is as under:
Monthly top-up = (Admissible Payout + Dearness Relief on Admissible Payout)- Representative Annuity amount
Where;
(a) Admissible Payout = Assured Payout x ((IC /BC) x(1-FW%)
In case IC is greater than BC, IC shall be taken as equal to BC.
Where, Assured Payout, IC, BC and FW shall be as per applicable regulations
(b) Representative Annuity Amount = Individual Corpus x(1-FW%) x (Representative Annuity Rate)/(12 x 100).
In case IC is greater than BC, IC shall be taken as equal to BC.
The Dearness Relief in respect of employees superannuating or retiring as the case may be, after implementation Dearness relief shall only be applicable with effect from 01st January 2016 as per 7th Pay Commission rates.
Illustrative examples of top-up amount computation are given under Schedule VII.
(5) In respect of such superannuated or retired employee as on 31st March 2025, who wants to avail the benefit of assured
payout, instead of availing monthly top-up shall have the option to replenish the shortfall on account of partial withdrawal,
if any, and equivalent to the benchmark corpus, as on the date of superannuation or retirement, as the case may be. The
amount to be replenished shall be calculated at the NAV rate of units as on date of exercising the option.
(6) The National Pension System Trust shall authorise the release of benefits as contained in the UPS Payout order, from
the pool corpus. The National Pension System Trust shall ensure payment of monthly top-up amount from the pool corpus
to the bank account of the UPS Subscriber and periodic release of applicable Dearness Relief. For this purpose, CRA
shall intimate the pension fund to effect redemption from the pool corpus for payment of such payout to the subscriber.
of subsequent pay commission, shall be as determined by the Central Government.