In this article, you will learn about the UPS lumpsum amount, payable to different categories of employees, and also about how our calculator works.

What is UPS (Unified Pension Scheme)

UPS is a newly introduced scheme that will run parallel to NPS, and the employees currently in the NPS regime can switch over to UPS. This new scheme was introduced because of two reason;

1. due to constant demand of employees to switch them to OPS.
2. states had already started to switch over to Old Pension Scheme (OPS).

The central government instead of bringing back OPS, brought this new scheme known popularly as Unified Pension Scheme. To understand the detailed differences between OPS, NPS and OPS, check this article.

What is UPS Lumpsum Amount?

Among various features like the assured pension and family pension, UPS also provides for a payment of a lumpsum amount to employees.

This lumpsum amount depends upon the last basic pay of an employee, DA% at the time of superannuation of an employee and the length of service given by an employee.

Eligibility for UPS Lumpsum Amount

In order to be eligible for UPS lumpsum amount, an employee should:

1. be under UPS regime.
2. have given a service of at least 10 years (120 months).

Formula Used for UPS Lumpsum Calculation

The Lumpsum amount is calculated using the formulla given below;

Lumpsum amount = 0.1 (basic pay + DA%)(L)

Where L = number of six monthly completed years of service based on the number of months for contribution to individuals pension corpus.

How our UPS Lumpsum Calculator Works

Our lumpsum calculator asks you to give following inputs;

1. Date of joining
2. date of retirement
3. basic pay at the time of retirement.
4. DA admissible at the time of retirement.

The date of joining and date of retirement are there to calculate the length of service of an employee. The calculator then breaks the length of service into six monthly years called L in the formula.

If after breaking the service into six monthly periods, some service of less than 6 months remains, that is neglected.

For example, if an employee has given a service of 123 months. The calculator breaks it into 6 monthly years and we get 20 six monthly years plus 3 months. The three months are neglected and 20 becomes "L" for the formula.

The calculator then uses the above formula and arrives at the amount of lumpsum admissible to an employee at the time of retirement.

Is our UPS Lumpsum calculator Reliable

Yes, it is completely reliable. We have cross checked it with all the data given by the concerned department and it has withstood all the tests. But still, we highly suggest you to consult your financial advisor before proceeding for any financial decision.

Pop Up Messages By the UPS Lumpsum calculator

This unified pension scheme lumpsum amount calculator gives pop ups in two cases. they are;

1. if your date of joining is before 2004. It is due to the reason that such employees are not eligible to avail the UPS scheme.
2. if your service length is less than 12 months. It is due to the reason that an employee needs to have a service of 120 months to be eligible for UPS lumpsum amount.

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So, this was all about our UPS lumpsum calculator. We are sure that you have loved using this calculator.