[Accurate] UPS Pension Calculator 2025, Check Your Pension in UPS

How To Use the UPS Calculator for Pension

In the above calculator, there are two input fields. They are;

• 12-month Average Basic Pay (P): Enter the employee’s average basic pay for last 12 months (e.g., 45000).
• Qualifying Service (Q): Enter total service months (e.g., 300 for 25 years).
• In the above calculator, we have not used the Individual corpus and Benchmark Corpus fields, assuming that the user has not neither missed any monthly contributions and has nor made any withdrawals.
• Individual Corpus (IC): It is corpus formed by the monthly contribution of an employee and employer. It is formed by employee contribution = 10% (of basic pay + DA) and a matching contribution by the employer.
• Benchmark Corpus(BC): It is the corpus that should be there at the end of the service. In case of an employee having service of more than 25 years, it is the corpus that should be there for 25 years of service.
• In case an employee (having service 25 years or less) has not missed any monthly contribution or has not made any withdrawals, then in such a case “Individual corpus = Benchmark Corpus“.

Calculation Logic for the above UPS Pension Calculator:

• The formula (P/2) * (Q/300) * (IC/BC) is applied.
• If Q > 300, it’s capped at 300.
• If the result is below ₹10,000, it’s raised to the minimum.
• Dearness Relief (DR) is always added as per the rules.
• If qualifying service is less than 10 years (120) months, the calculator will not give any results as such employees are not eligible for pension under UPS.

What is Benchmark Corpus in UPS? How to Calculate Benchmark Corpus

Benchmark corpus is the amount of money that is expected to be in an employee’s individual corpus account after a service period of 10 to 25 years. The individual corpus is formed by a contribution equal to 10% of the employee’s basic pay plus DA, along with an equal contribution from the employer.

Suppose an employee serves for less than 10 years, the UPS and its associated conditions shall not apply in his case.

If an employee gives a service for 10 to 25 years and neither misses any monthly contribution to their individual corpus nor makes any withdrawals from it, then the entire amount in the individual corpus at the time of retirement is called the benchmark corpus. In this case, individual corpus = benchmark corpus.

If an employee gives a service for 10 to 25 years and either misses any monthly contribution to their individual corpus or makes any withdrawals from it, or both, the expected amount is not present in the individual corpus at the time of retirement. In this case, individual corpus < benchmark corpus.

If an employee gives a service for more than 25 years and neither misses any monthly contribution to their individual corpus nor makes any withdrawals from it, the amount in the individual corpus will exceed the expected amount. In this case, individual corpus > benchmark corpus.

Service Period	Condition	Outcome
Less than 10 years	UPS and associated conditions shall not apply	No benchmark corpus
10 to 25 years	No missed monthly contributions and no withdrawals from the individual corpus	Individual corpus = Benchmark corpus
10 to 25 years	Missed contributions or made withdrawals, or both	Individual corpus < Benchmark corpus
More than 25 years	No missed monthly contributions and no withdrawals from the individual corpus	Individual corpus > Benchmark corpus
More than 25 years	Missed contributions or made withdrawals, or both	individual corpus may be <, =, or > benchmark corpus

Understanding terms like individual corpus and benchmark corpus will help you understand the working of the above UPS pension calculator better.

Unified Pension Scheme (UPS)

Unified Pension Scheme is a newly devised pension scheme for the central government employees. It has been set up as a parallel option to the in-vogue National Pension Scheme (NPS), as that was criticized on various ground and also due to the fact that many state governments had already started switching to the Old Pension Scheme (OPS), that was there before the introduction of NPS in 2004.

Under this Unified Pension Scheme following conditions will be applicable;

1. It is a fund based pension system, and it relies on the contributions made by an employee and the employer.
2. The unified pension scheme corpus will comprise of two parts;
   • An individual corpus; constituted by the employee contribution = 10% of his basic pay + DA, and a matching contribution by the employer.
   • Pool corpus; constituted by an additional contribution made by employer. It is equal to 8.5% of employees basic pay + DA.
3. An employee should have completed a qualifying service of at least 10 years to be eligible for pension under UPS.
4. The rate of full assured payout will be equal to 50% of the last twelve month average basic pay. Full assured payout will be given only if an employee has given 25 years of service and his Individual corpus is equal to benchmark corpus.
5. In case of lesser qualifying service, payouts proportionate to his service will be given out.
6. Under UPS, employees are entitled to Dearness relief also.
7. There is also a provision for family pension under this new regime. In case of an employees death, the family members will be entitled to 60% of the pension.
8. The effective date of operationalization of UPS will be 1-April-2025.

UPS vs NPS vs OPS, Which One is Better

Unified Pension Scheme (UPS) is an option only for such employees who are currently under NPS regime. The employees have been given a choice to either stay in NPS or switch to UPS before the date of operationalization.

If an employee makes a choice of shifting to UPS, he/she shall cease to have the right to go back to NPS.

So, if you are wondering what are the differences between the OPS, NPS and UPS, given below is a table showing the differences between the two.

Aspect	UPS	NPS	OPS
Eligibility	Government employees currently under NPS.	Government employees, private employees, self-employed, and NRIs.	Government employees who joined before 2004.
Contribution	Government: 18.5% of basic salary + DA , Employee: 10%.	Government: 14% of basic salary + DA, Employee: 10%.	Fully government-funded.
Returns	(50% of last 12 months’ average salary) + DA.	Market-based returns, dependent on investments.	(50% of last drawn salary) + DA.
Minimum Pension	₹10,000 per month (for 10+ years of service).	No fixed minimum pension, depends on investments.	₹9,000 per month + DA revisions.
Gratuity	Paid along with a lump sum amount.	No gratuity benefit.	Up to ₹20 lakh gratuity paid.
Family Pension	60% of the pension amount given to family after retiree’s death.	Depends on the accumulated corpus and annuity plan.	Full pension benefits transferred to the family.
Lump Sum Payment	1/10th of last drawn pay for every 6 months of service.	60% of total corpus can be withdrawn, 40% invested in annuity.	Commuted pension can be taken as a lump sum, up to 40%.
Risk Factor	Risk-free with guaranteed pension.	Market risk involved; returns fluctuate.	Risk-free with assured pension and DA increments.
Tax Benefits	Not clear yet.	60% withdrawal tax-free, 40% annuity taxable.	No specific tax benefits.
Inflation Protection	Pension linked to inflation (AICPI-IW index).	No automatic DA revision.	DA revised twice a year (January & July).
Remarks	Balanced approach, guaranteed pension with government and employee contributions.	Higher potential returns but market-dependent.	Best of all, but not available now

So, these are the differences between UPS, NPS and OPS.

So, this was all about the UPS pension calculator. It is also known as the UPS Salary calculator and UPS Retirement Calculator. We are sure that you have loved this tool.