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If you are in a government job and think about the pension you will get after retirement, then there is good news for you. Now you can estimate how much pension you will get after retirement. For this, a new UPS Calculator has been launched. The Department of Financial Services (DFS) has said that this calculator is now available to all government employees.

This tool will help employees under both the National Pension System (NPS) and the Unified Pension Scheme (UPS) to estimate their pension.

What is the Unified Pension Scheme (UPS)?

From April 1, 2025, the Central Government has implemented the Unified Pension Scheme (UPS). This scheme has been brought under the framework of NPS and its purpose is to give a fixed and guaranteed pension to government employees. In this scheme, after retirement, employees will get benefits like a fixed pension, lump sum, and gratuity. This scheme is especially for those who want financial security after the job.

How will the UPS calculator help?
This calculator gives a side-by-side estimate of the possible pensions available in both NPS and UPS schemes. Through this, employees will be able to know how much benefit they will get in which scheme. This will help them understand their retirement plan better and choose the right scheme.

What is the formula for a guaranteed pension?
The employee will have to contribute 10 percent of his basic salary and DA.
The government will also give an equal amount.
Under the UPS scheme, a monthly pension of at least Rs 10,000 is guaranteed.
A lump sum amount will also be available on retirement, which will be 10 percent of the last salary and DA.
If an employee takes voluntary retirement after 25 years of service, he will get a pension only when he reaches the normal retirement age.
Who can avail of the benefits of UPS?
If you have completed 10 years or more of service and have opted for UPS, then you are eligible for this scheme.
If you retire without any punishment under FR 56 (j), you will still get a pension.

If you take voluntary retirement after 25 years of service, you will still get the benefit of UPS.

Who will not get the benefit of UPS?

If your job was less than 10 years.

If you have been removed from service or you have left the job yourself.

In such cases, the benefit of the UPS scheme will not be available.

What will the family get after retirement?

If the employee dies after retirement, then his wife or husband will get 60 percent of the pension.

For example, if the employee was getting a pension of Rs 10,000, then his family would be given a pension of Rs 6,000 per month.

Is the UPS scheme beneficial?

If you want a fixed income every month after retirement, then the UPS scheme can be a better option for you. However, it is worth noting that contributions will be deducted from your salary every month. This scheme can be more beneficial for employees who work for a long time and want financial stability after retirement.

How to use a UPS calculator?
Government employees can use this calculator by visiting the website of DFS or NPS Trust. This tool is user-friendly and helps in estimating pensions easily.

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