Section 19 of The Unified Pension Scheme
19. Payments under UPS. – (1) The payment of benefits to UPS Subscriber shall be in accordance with the UPS
Notification, these regulations and guidelines, circulars, instructions or any directions issued by the Authority or the
Central Government, as the case may be.
(2) The application for payment of benefits under UPS shall be made in the applicable Forms in Schedule I and submitted
to the Head of Office or DDO:
(i) In respect of benefits to a UPS subscriber covered under clause (i) and (ii) of sub-regulation (1) of regulation 3;
(a) The UPS Subscriber shall submit Form B1 contained in Schedule I, at the time 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; or
(b) The legally wedded spouse shall submit Form B3, in case the deceased UPS subscriber has availed benefits
under UPS or Form B5 in case the deceased UPS subscriber was eligible for UPS benefits but had not yet availed
UPS benefits, to avail family payout after death of an employee. (ii) In respect of benefits admissible to a UPS subscriber covered under clause (iii) of sub-regulation (1) of regulation 3:
(a) The past retiree shall submit Form B2 as provided in Schedule I.
(b) The legally wedded spouse shall submit Form B4, in case the deceased subscriber has availed benefits of UPS or Form
B6 in case the deceased subscriber has not exercised the option of UPS as applicable, contained in Schedule I in case of
past retirees, within the time specified for the purpose.
(3) The UPS Subscriber, at 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, shall authorise the transfer of the value of units in the individual corpus to the pool corpus, which shall not
exceed the value of the benchmark corpus. In case the value of the individual corpus authorised for transfer is less than
the value of benchmark corpus, assured payout shall be proportionately reduced, unless the shortfall is replenished.
(4) In respect of employee who has superannuated or retired on or before 31st March2025, there shall be no requirement
of transfer of individual corpus to the pool corpus. However, benefits under UPS as are admissible to such employees
shall be paid out of the Pool Corpus
Section 20 of The Unified Pension Scheme
(1) The benefits payable to a UPS Subscriber shall be recorded by the respective PAO in a
UPS Payout Order as provided in Form B1, B2, B3, B4, B5 or B6 in Schedule I, as may be applicable, and sent to the
National Pension System Trust through CRA. A copy of such UPS Payout Order shall simultaneously be made available
to the UPS Subscriber or the legally wedded spouse, as the case may be.
(2) The UPS Payout Order shall include the following details:
i. requisite details of UPS Subscriber including particulars of legally wedded spouse of such subscriber as appearing in
the service records, 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;
ii. the period of qualifying service (in accordance with regulation13) determined by the Head of Office, at the time 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;
iii. Details of joint bank account of the UPS Subscriber and legally wedded spouse;
iv. Percentage of final withdrawal upto sixty percent. of individual corpus as opted by UPS Subscriber;
v. Details of benefits applicable under UPS as specified under these regulations, such as:
a. lumpsum payment;
b. value of individual corpus and benchmark corpus as computed by the CRA in its system;
c. assured payout;
d. admissible payout;
e. family payout;
f. applicable dearness relief.
vi. the date of commencement of admissible payout to subscriber; and
vii. such other details as may be determined for facilitating payments. (3) In the case of an employee seeking voluntary retirement after completion of twenty-five years of qualifying service,
the UPS payout order shall mention the date of commencement of admissible payout, being the next day after the date,
employee would have superannuated if continued in service.
Section 21 of The Unified Pension Scheme
21. Processing of UPS Payout Order. – (1) Upon receipt of UPS Payout Order, NPS Trust shall authorise –
(i) release of admissible payout;
(ii) release of lumpsum payment;
(iii) release of final withdrawal
(iv) release of the surplus amount in the individual corpus, if any over the benchmark corpus; and
(v)
dearness relief on the Admissible Payout.
(2) The NPS Trust shall ensure payment of monthly payout 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 to the pension fund to
effect redemption from the Pool Corpus for payment of such payout to the subscriber.
Section 22 of The 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.
Section 23 of The Unified Pension Scheme
23. Filing of claim by eligible employee superannuating or retiring, as the case may be, from 1st April 2025. – (1)
Every Head of Office shall have a list prepared every three months i.e., on the 1st January, 1st April, 1st July and 1st
October of every year of all the Central Government employees who are due to retire within the next twelve months from
the respective date, and who are eligible for benefits under UPS.
(2) A copy of such list as specified in sub-regulation (1) shall be provided to the PAO concerned, not later than 31st
January, 30th April, 31st July or 31st October as the case may be.
(3) The PAO shall keep updated the service records of such employees covered under sub-regulation (1).
(4) The CRA shall make available to DDO and PAO in their CRA system login the details of partial withdrawals made if
any, by superannuated or retired employee, and value of individual corpus and benchmark corpus as on the date of
superannuation or retirement.
(5) The DDO shall update the records in CRA system after obtaining necessary details, if required from Head of Office
and forward the same to PAO for its authorisation in such system.
(6) Based on the verification of subscriber details by Head of Office, the PAO shall issue a UPS Payout order, as per
Form B1, B3 or B5, as applicable, containing details as specified under regulation 20.
(7) Upon receipt of UPS Payout Order by National Pension System Trust together with option of final withdrawal if any
by the UPS subscriber, the National Pension System Trust shall authorise the release of UPS benefits as specified under
these regulations and authorise the transfer of the balance in the individual corpus to pool corpus.
(8) The National Pension System Trust shall ensure payment of monthly payout 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 to the
pension fund to effect redemption from the Pool Corpus for payment of such payout to the subscriber.