%20(1).jpg)
🎬 Now Showing: KAHANI TEEN YOJNAON KI (HINDI 2D)
🎬 Now Showing: LATEST CLARIFICATION ON MATERNITY LEAVE (HINDI 2D)
🎬 Now Showing: CASUAL LEAVE - A CONVERSATION (HINDI 2D)
🎬 Now Showing: TEASER VIDEO OF PAY FIXATION RECKONER (2D VISUAL WITH MUSIC)
📢 TO VIEW MORE INFO NEWS HIGHLIGHTS LIKE THIS👉
Click here
National Pension System (NPS) vs Unified Pension Scheme (UPS)
A comparative analysis of India's two major pension systems for government employees
National Pension System (NPS)
Market-linked defined contribution plan with flexibility in investment choices and higher potential returns.
Unified Pension Scheme (UPS)
Hybrid defined benefit system offering guaranteed pension amounts and inflation protection.
| Feature | NPS | UPS |
|---|---|---|
| Type |
Market-linked defined contribution
|
Hybrid: defined benefit + contribution
|
| Pension Amount |
Depends on market returns and annuity rates
Variable amounts based on performance
|
Guaranteed 50% of last 12 months' basic pay (25+ yrs service)
Fixed calculation formula
|
| Minimum Pension | No fixed minimum | ₹10,000/month for ≥10 years of service |
| Contributions |
Employee: 10% of Basic + DA
Govt: 14% of Basic + DA
|
Employee: 10% of Basic + DA
Govt: 18.5% of Basic + DA
|
| Risk Factor |
Market volatility
|
Risk-free, assured pension
|
| Key Benefits |
✓
60% corpus tax-free + annuity
✓
Choice of fund manager & asset allocation
|
✓
Defined benefit + annuity structure
✓
DA-indexed inflation protection
|
Who Should Choose NPS?
-
Younger employees with longer time horizons
-
Those comfortable with market-linked instruments
-
Prefer flexibility in investment choices
Who Should Choose UPS?
-
Employees seeking guaranteed pension benefits
-
Those nearing retirement age
-
Prefer financial security over higher potential returns
Contribution & Benefit Comparison
NPS
UPS
Employee Contribution: 10%
Employee Contribution: 10%
Govt Contribution: 14%
Govt Contribution: 18.5%
Market Returns
Guaranteed Pension
Disclaimer: This comparison is for informational purposes only. Please consult with a financial advisor or refer to official government documents before making any pension scheme decisions.
| Feature | NPS (National Pension System) | UPS (Unified Pension Scheme) |
|---|---|---|
| Type | Market-linked defined contribution | Hybrid: defined benefit + contribution |
| Pension Amount | Depends on market returns and annuity rates | Guaranteed 50% of last 12 months' basic pay (25+ yrs service) |
| Minimum Pension | No fixed minimum | ₹10,000/month for ≥10 years of service |
| Employee Contribution | 10% of Basic + DA | 10% of Basic + DA |
| Govt Contribution | 14% of Basic + DA | 18.5% of Basic + DA |
| Risk Factor | Market volatility | Risk-free, assured pension |
| Gratuity | ✅ Applicable | ✅ Applicable |
| Family Pension | Based on annuity plan chosen | 60% of pension to spouse/family |
| Inflation Protection | No automatic revision | Indexed via AICPI-IW (DA linked) |
| Lump Sum Benefit | 60% corpus tax-free + annuity | Defined benefit + annuity structure |
| Tax Benefits | ✅ 80CCD(1), (1B), (2) deductions available | ✅ Same benefits extended mutatis mutandis |
| Flexibility | Choose fund manager, asset allocation | Limited, governed by UPS rules |