Comparison of UPS, NPS and OPS
S.N. Particulars UPS NPS OPS
1 Pension 50% of the average basic pay over Pension amount depends on 50% of the last drawn
the last 12 months of retirement the investments made in the salary or average earnings
for employees retiring with at least NPS investment scheme and over the previous 10
25 years of service and the accumulated corpus. months of service,
proportionate pension benefits for whichever is more with at
employees with 10-25 years of least 20 years of service.
service.
2 Minimum Rs. 10,000 per month for Minimum pension amount Rs. 9,000 per month for
pension employees with at least 10 years of depends on the investments employees with at least
service. made in the NPS scheme. 10 years of service.
3 Gratuity Eligible Eligible Eligible
4 Family pension In the case of the retiree’s death, Family pension amount 30% of basic pay subject
60% of the pension provided depends on the accumulated to the minimum of
immediately before the demise is corpus and the chosen Rs.9000 per month.
given to the family. annuity plan.
5 Employer’s 18.5% of basic pay + DA. 14% of basic pay + DA. No contribution to the
contribution pension fund
6 Employee’s 10% of basic pay + DA. 10% of basic pay + DA. No contribution to the
contribution pension fund.
7 Lump sum A lump sum amount is provided to 60% of the NPS corpus can be A lump sum amount could
amount employees upon superannuation, withdrawn as a lump sum be taken at the time of
payment / which is 1/10th of their last drawn upon superannuation. retirement, not exceeding
Commutation monthly pay for every six months 40%, through
of pension of completed service. commutation of pension.
Full pension restores on
completion of 15 years.
In case of death of
pensioner commutated
portion will not be
recovered.
8 Inflation Provides inflation protection by There is no provision for The pension is revised
protection adjusting pensions based on the automatic DR increments to twice a year,
All-India Consumer Price Index for protect against inflation. i.e. on January 1st and
Industrial Workers (AICPI-IW). July 1st, by increasing the
Proposed DA may start from zero Dearness Relief (DR)
on 01.04.2025.
9 Additional No mention about additional Not available. Pension goes up by 20%,
pension / family pension. 30%, 40%,
pension 50% and 100% after
attaining the age 80, 85,
90, 95 and 100
years respectively.
10 Voluntary If an employee takes voluntary 80% of corpus will be kept for Will get all eligible
retirement on retirement after completion of 25 annuity fund. settlement at the time of
completion of years of service, he will be eligible voluntary retirement after
qualifying to receive his pension only at completing 20 years of
service superannuation age. service.
11 Risk factor Risk-free as it provides an assured There are market risks as the Risk-free as it provides an
pension. returns depend on the assured pension.
performance of the market-
linked funds.
12 Tax for May follow the system followed for 10% contribution by N.A
contribution NPS. employee is taxable. Eligible
towards for tax benefit for combined
pension fund limit of Rs.1.5 lakh under 80C,
80CCC and 80CCD(1).
