Assured Payout, at the rate of 50% of last 12 monthly average basic pay, immediately prior to superannuation. Assured payout is payable after a minimum 25 years of qualifying service. In case of lesser qualifying service period, proportionate payout would be admissible.
Minimum Guaranteed Payout: ₹10,000/month (after 10 years of service).
Proportionate payout: Between 10 and 25 years of service.
Final Withdrawal: Up to 60% of IC or BC, whichever is lower. Reduces assured payout proportionately. Option to replenish shortfall to restore full payout.
Lump Sum Payment: ₹ (1/10) × (Last Drawn Basic Pay + DA) for every completed 6 months of qualifying service. Payable on superannuation, voluntary retirement, or retirement under FR 56(j).
Family Payout: The legally wedded spouse shall receive 60% of admissible payout drawn by the subscriber immediately prior to the demise.
Dearness Relief: Payable on both admissible payout and family payout, as notified by the Government.
Gratuity Benefits: Retirement Gratuity and Death Gratuity are extended to UPS subscribers under the CCS (Payment of Gratuity under NPS) Rules, 2021.
Tax Treatment
As per the CBDT Office Memorandum dated 02.07.2025, the following provisions of the Income Tax Act, 1961 apply to UPS:
- Section 80CCD(1), 80CCD(1B), 80CCD(2), 80CCD(3), 80CCD(4) – Deductions for contributions.
- Section 10(12A), 10(12B) – Exemptions on withdrawals and annuities.
These provisions apply mutatis mutandis to UPS, subject to prescribed limits. Any deviation in payout or contribution structure would require legislative amendment.