OPS UPS NPS

NPS CALCULATION :

A Govt servant joins at Level 4 with basic 25500/- at the age of 25 years on 1st January 2024, then his retirement on 31st December 2058.

It is taken no promotion he will accept except MACP after 10 years of interval and D.A is calculated on 3% for every 6 months.

There will no calculation of pay commission. It is a simple calculation of our NPS fund. 

Pay Commission and actual D.A and market return  will be slight effect on it.

UPS : UNIFIED PENSION SCHEME :

Key Points:  (Differences from OPS & NPS)

🟢 Assured Pension after retirement: UPS will provide assured pension as 50% of average basic pay of last 12 months plus Dearness allowance. 

Where OPS provides 50% of last drawn basic pay or 50% of basic pay of last 10 months, whichever is higher. 

For that reason assured pension will be lowered than your OPS pension. In last 12 month there will be at least an increment, so average will be lower than last month pay.

🟢 Minimum service tenure for UPS is 10 years.  same as OPS.

🟢 Minimum basic pension is Rs.10,000/-  (OPS minimum pension is Rs.9000/-)

🟢  Minimum required service tenure for assured for 50% of last 12 months average basic is 25 years qualified service.

🟢 Incase of VRS after 25 years assured pension will be started from the date on which the employee would have superannuated, if he had continued in service.  Means you will not be able to get pension after VRS after 25 years of service. In OPS VRS would be opted after 20 years of service and pension will be started from next month.

🟢 There is a concept of Benchmark Corpus (BC), which will be set at the time of retirement. 

If individual corpus is short than BC, then to get full assured pension he would have to make over the shortfall, otherwise he will get proportionate pension. 

If individual corpus is more than BC, the excess amount will be paid to the subscriber bank account at the time of retirement. 

🟢 Lumpsum Withdrawal: 60 % of total Individual Corpus or Benchmark Corpus, which ever is lower, will be allowed to withdraw , but pension will be paid proportionate to the Benchmark Corpus.  

That means to get assured pension you should maintain the Benchmark Corpus, and withdrawal after that. 

🟢 Lumpsum Payout: 1/10 th of the last basic pay plus DA for each completed six monthly period of qualifying service. 

It is actually the gratuity and in OPS & NPS it is 1/4th of last basic pay plus DA. 

Calculation of assured pension:

Assured pension = (1/2 of P)* (Q/300)* (IC /BC)

P= Average of last 10 months basic  pay.

Q= Number of month of qualifying service

IC= Individual Corpus

BC= Benchmark Corpus.

🟢 Partial withdrawal: after 3 year from joining in UPS & maximum 3 times in service tenure including withdrawal in NPS. Limit of withdrawal 25% 

of own contribution. Same as NPS.

🟢 Assured family pay out: 60% of payout to the subscriber.

OPS- 30% of last drawn basic plus D.A and minimum Rs.9000/- and incase of death in service the family pension will be 50% of last drawn basic, paid upto 10 years.