unified pension scheme calculator, UPS Calculator for Pension
Pension Scheme Comparison
| Feature | Unified Pension Scheme (UPS) | National Pension System (NPS) | Old Pension Scheme (OPS) |
|---|---|---|---|
| Introduction | To be implemented from April 1, 2025 | Introduced on January 1, 2004 | Existed before NPS, phased out for new employees |
| Pension Basis | 50% of the average basic pay of the last 12 months | Market-linked, depends on fund performance | Fixed pension based on the last drawn salary |
| Employee Contribution | 10% of salary | 10% of salary | No employee contribution |
| Government Contribution | 18.5% of salary | 14% of salary | Fully funded by the government |
| Assured Pension | Yes, 50% of last 12 months’ average basic pay | No assured pension, dependent on market returns | Yes, fixed pension amount based on last drawn salary |
| Investment Options | Balanced approach with some assurance | Multiple investment options | No investment options, defined benefit scheme |
| Family Pension | Yes, 60% of the employee’s pension | No specific family pension component | Yes, family pension available |
| Tax Benefits | Yes, offers tax benefits | Substantial tax benefits under Sections 80C and 80CCD | Limited tax benefits, pension received is taxable |
| Risk Factor | Risk-free with guaranteed returns | Market risks based on fund performance | Risk-free, guaranteed returns |
| Lump Sum Benefit | 1/10th of monthly emoluments for every six months of service | 60% lump sum, 40% annuity | No lump sum, only defined pension |
| Inflation Indexation | Yes, inflation-linked increments post-retirement | No specific indexation, depends on fund returns | Yes, with inflation-linked increments |
