- Assured Pension: UPS guarantees a monthly pension payout of 50% of the average basic pay over the last 12 months before retirement. A minimum assured pension of ₹10,000 per month is provided after 10 years of service.
- Contributions: Employees contribute 10% of their basic pay plus Dearness Allowance (DA), matched by the central government. Additionally, the government provides an extra 8.5% contribution to support the assured payouts.
- Eligibility: Central government employees under the National Pension System (NPS) can opt for UPS. However, once they switch to UPS, they cannot revert to NPS.
- Tax Benefits: Contributions under UPS are tax-exempt, similar to NPS, offering financial advantages.
- Inflation Protection: Dearness Relief is provided to retirees, ensuring the pension keeps pace with inflation.
- Switching Process: Employees can migrate to UPS through an online or offline application process.
This scheme aims to provide financial stability and security for government employees post-retirement.