Payout on Superannuation, Voluntary Retirement and Family Payout - FAQs related to Benefits under UPS

FAQs related to Benefits under UPS – Payout on Superannuation, Voluntary Retirement and Family Payout

(CGA, DoE, MoF O.M. No. TA-3-07001/3/2025-TA-CGA/e-19475/341 dated 17.09.2025)

FAQs related to Benefits under UPS

36. How is the assured payout calculated under UPS?

• The rate of full assured payout will be @50% of 12 monthly average basic pay, immediately prior to superannuation, payable after a minimum 25 years of qualifying service.
• In case of lesser qualifying service period, proportionate payout would be admissible.
• A minimum guaranteed payout of Rs. 10,000 per month shall be assured in case superannuation is after 10 years or more of qualifying service subject to timely and regular credit of contributions and no withdrawals.
• In cases of voluntary retirement after a minimum 25 years of qualifying service, assured payout will commence from the date on which the employee would have superannuated if he had continued in service.

Assured Payout=(12 of P)×(Q/300)Assured Payout=(21​ of P)×(Q/300)

• P=Average of Basic Pay for the last 12 months before retirement.
• Q=Number of qualifying service months.

If Q is:

• Less than 120 months → UPS benefits do not apply.
• More than 300 months → QQ is capped at 300 months.

37. When will the payout commence in case of voluntary retirement?

In cases of voluntary retirement after a minimum 25 years of qualifying service, assured payout will commence from the date on which the employee would have superannuated if he had continued in service.

38. What happens to the payout on taking voluntary retirement on completion of twenty (20) years of regular service?

The subscriber, on voluntary retirement from service after completion of twenty years shall be entitled to pro-rata assured payout, as admissible.

(For more details about retirement on completion of twenty years’ regular service, refer to Rule 13 of the Central Civil Services (Implementation of the Unified Pension Scheme under the National Pension System) Rules, 2025)

39. What is the amount of minimum guaranteed payout under UPS?

A minimum guaranteed payout of Rs. 10,000 per month is guaranteed after completing 10 years of qualifying service.

40. Will the assured payout under UPS reduce in case of reduction in qualifying service?

Yes, in case of Qualifying service period of ten years or more, but less than twenty-five years, proportionate payout shall be payable.

41. Under what conditions shall the assured payout reduce?

Assured payout shall be proportionately reduced in any or both of the following cases –

a) Individual corpus is less than the benchmark corpus as on the date of superannuation or voluntary retirement or retirement under Fundamental Rules 56(j), as may be applicable;

b) Final withdrawal not exceeding sixty percent of the individual corpus, as opted by a subscriber. The assured payout so proportionately reduced shall be payable as admissible payout.

42. What is Admissible Payout?

The assured payout (refer Q 41) proportionately reduced shall be payable as admissible payout. The formula for calculating admissible payout is as under:

Admissible Payout = Assured Payout x IC/BC x (1-FW%), where, IC= value of Individual Corpus, BC= value of Benchmark Corpus, with condition of IC ≤ BC

FW= Final withdrawal in percentage points (maximum upto sixty percent of IC or BC, whichever is lower).

43. What is Family Payout under UPS?

The legally wedded spouse as on date of superannuation/retirement of the deceased subscriber shall receive for life, family pay out of sixty percent of the amount of the admissible payout or top-up amount drawn by the subscriber immediately prior to the demise.

44. Subscriber who was eligible to receive UPS benefits but has not claimed any benefits prior to demise, whether spouse of such deceased UPS subscriber is eligible to receive UPS benefits?

Yes, the legally wedded spouse shall be eligible to receive the benefits payable to deceased subscriber till the date of his/her demise. Thereafter, the spouse shall be eligible for family pay out of sixty percent of the amount eligible to be received by such subscriber immediately prior to the demise.

 

45. What are the benefits available under UPS, to superannuated or retired employees covered under National Pension System on or before 31st March 2025?

Employee who complies with the requirements under regulation 4 and regulation 19 shall be eligible to receive the following benefits –

a) lumpsum payment;
b) monthly top-up amounts payable immediately after the date of superannuation or retirement;
c) applicable dearness relief; and
d) 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.

Further, 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.

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.

46. How the monthly top-up amount is calculated for employees already retired on or before 31st March 2025 and receiving annuity under NPS?

Such employees will receive monthly top-up amount, which will be calculated as follows:

Monthly top-up = (Admissible Payout + Dearness Relief on Admissible Payout)- Representative Annuity amount

47. What is Representative Annuity rate & amount?

Representative Annuity rates for the period from January 2014 to March 2025 are provided under Schedule VI of PFRDA (Operationalization of Unified Pension Scheme under National Pension System) Regulations, 2025.

Representative annuity amount= I(C)×(1−FW%)I(C)×(1−FW%) *(Representative Annuity Rate)/ 12∗10012∗100. In case IC is greater than BC, IC shall be taken as equal to BC.

48. What benefits available and when payable under UPS to subscriber/Spouse?

Table-1 (UPS subscriber who superannuated/retired on or before 31/03/2025)

Type of Benefit	UPS subscriber who superannuated/retired on or before 31/03/2025
	By subscriber	By spouse (deceased subscriber already availed benefits)	By spouse (deceased subscriber not availed benefits)
Claim Forms	B2	B4	B6
Lumpsum payout (1/10th of last drawn basic pay + DA) for every completed 6 months	Upon submission of claim form and its authorization by PAO, payable as on date of superannuation/retirement, along with interest.	Not applicable	Upon submission of claim form and its authorization by PAO, payable as on date of superannuation/retirement, along with interest.
Final withdrawal amount (maximum 60% of IC or BC whichever is lower)	Not applicable, as already settled under NPS.	Not applicable, as already settled under NPS.	Not applicable, as already settled under NPS.
Monthly Top-up amount (including DR)	Upon submission of claim form and its authorization by PAO, payable immediately after date of superannuation/retirement, along with arear and interest.	Upon submission of claim form and its authorization by PAO, Monthly Family Payment (60 % of top-up amount payable to subscriber) payable immediately after demise of subscriber. Adjustment of excess monthly top up paid for subscriber upto the date of commencement of family payout, if any, shall be made	Upon submission of claim form and its authorization by PAO, Monthly Family Payment (60 % of top-up amount payable to subscriber), payable immediately after demise of subscriber. Arrears upto date of commencement of Family Payout (including arrears of monthly top up payout payable to subscriber)

Table-2 (UPS subscriber who superannuated/retired on or after 01/04/2025)

Type of Benefit	UPS subscriber who superannuated/retired on or after 01/04/2025
	By subscriber	By spouse (deceased subscriber already availed benefits)	By spouse (deceased subscriber not availed benefits)
Claim Forms	B1	B3	B5
Lumpsum payout (1/10th of last drawn basic pay + DA) for every completed 6 months	Upon submission of claim form and its authorization by PAO, payable as on date of superannuation/retirement	Not applicable	Upon submission of claim form and its authorization by PAO, payable as on date of superannuation/retirement.
Final withdrawal amount (maximum 60% of IC or BC) whichever is lower	Upon submission of claim form and its authorization by PAO, payable as on date of superannuation/retirement	Not applicable	Upon submission of claim form and its authorization by PAO, payable as on date of superannuation/retirement.
Monthly Admissible Payout	Upon submission of claim form and its authorization by PAO, payable immediately after date of superannuation/retirement under FR 56 (j). In case of voluntary retirement payable from the deemed date of superannuation.	Upon submission of claim form and its authorization by PAO, Monthly Family Pay-out (60 % of monthly payout to subscriber) payable immediately after demise of subscriber. Adjustment of excess monthly top up paid for subscriber upto the date of commencement of family payout, if any, shall be made	Upon submission of claim form and its authorization by PAO, Monthly Family Pay-out (60 % of monthly payout payable to subscriber), payable immediately after demise of subscriber. Arrears upto date of commencement of Family Payout (including arrears of monthly payout payable to subscriber)
Excess, if any, of Individual Corpus vis-a-vis Benchmark Corpus	Upon submission of claim form and its authorization by PAO, payable as on date of superannuation/retirement.	Not applicable	Upon submission of claim form and its authorization by PAO, payable as on date of superannuation/retirement.

49. Who are eligible to receive assured payouts under UPS?

Assured Payout, subject to certain conditions, shall be available only in the following cases: –

(a) In case of an employee superannuating after qualifying service of 10 years, from the date of superannuation;
(b) In case of the Government retiring an employee under the provisions of FR 56 (j) (which is not a penalty under Central Civil Services (Classification, Control and Appeal) Rules, 1965) from the date of such retirement; and
(c) In case of voluntary retirement after a minimum qualifying service period of 25 years, from the date such employee would have superannuated, if the service period had continued to superannuation.

50. Who can claim family payout under UPS?

Only the legally wedded spouse as on date of superannuation/retirement of the deceased UPS subscriber whose name appears as such in the service records as on the date of superannuation or voluntary retirement or retirement under Fundamental Rules 56(j), as may be applicable, and who is surviving the deceased subscriber is eligible for claiming family payout under UPS.

51. Whether the spouse of the subscriber who married the subscriber after the date of superannuation, is eligible for family payout?

No, only the legally wedded spouse as on date of superannuation/retirement is eligible for family payout.

52. Is there any provision for lump-sum payment under UPS?

Yes, a lump-sum amount equivalent to one-tenth of the last drawn basic pay (plus NPA and DA) is paid for every completed 6-month period of qualifying service.

53. Is there any option to withdraw an amount under UPS at the time of retirement? How much is the final withdrawal percentage?

Yes, UPS Subscriber shall have an option of final withdrawal for an amount not exceeding sixty percent (60%) of the individual corpus or benchmark corpus, whichever is lower, available in the PRAN tagged to UPS as on the date of superannuation or voluntary retirement or retirement, subject to proportionate reduction in the assured payout payable to such UPS Subscriber.

54. How the final withdrawal amount shall be calculated in case Individual Corpus is more than the benchmark corpus?

Final withdrawal of up to 60% of the individual corpus or benchmark corpus (whichever is lower) is allowed as on date of Superannuation or Voluntary retirement or retirement under 56(j).

55. When will final withdrawal be admissible?

Such final withdrawal shall be admissible on the date of superannuation or voluntary retirement or retirement under Fundamental Rules 56(j).

56. How is Dearness Relief applied under UPS?

Dearness Relief as declared by the Central Government from time to time, will be applicable on admissible payout and family payout. Dearness Relief shall be payable only when admissible payout commences.

57. Can a subscriber make partial withdrawals during the service period?

Yes, partial withdrawals maximum up to 3 times, up to 25% of self-contribution (excluding returns) are allowed after completion of lock-in period of three years from the date of enrolment under UPS or NPS whichever is earlier, for specified purposes.

58. What purposes are allowed for partial withdrawal under UPS?

Higher education of children, marriage of children, purchase/construction of residential house, medical emergencies, disability-related expenses, and skill development.

59. How many times can partial withdrawals be made under UPS?

A maximum of three times, including withdrawals made under NPS before opting for UPS.

60. Is there any option to replenish the partial withdrawal made under UPS?

Yes, the subscriber has the option to replenish the partially withdrawn amount before retirement.