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April 2026·Note 16 of 25
Social SecurityPIB BriefPublished: 2026-04-16
Unified Pension Scheme (UPS) Framework vs EPS-95 & NPS
Source: PIB / Ministry of Finance / PFRDA
UPSNPSEPS-95Pension Architecture
The Union Government structured the Unified Pension Scheme (UPS) for central government civil employees, bridging features of the Old Pension Scheme (OPS - non-contributory defined benefit) and National Pension System (NPS - market-linked defined contribution).
| Parameter | UPS (Government) | NPS (PFRDA) | EPS-95 (EPFO Organised) |
|---|---|---|---|
| Type | Assured Pension (Defined Benefit) | Market Linked (Defined Contrib.) | Defined Benefit Statutory Pool |
| Eligibility | Minimum 25 yrs (full), 10 yrs (pro-rata) | Accumulation till age 60/superannuation | Minimum 10 yrs contributory service |
| Pension Quantum | 50% of average basic pay of last 12 months | Based on 40% annuity purchase | Pension = (Pensionable Salary × Service) / 70 |
| Inflation Relief | Dearness Relief (DR) indexed to AICPI | No statutory DR on annuity | No automated regular indexation |
Practice Quiz for this Note
2 UPSC-pattern questions on this topic
Question 1 of 2(0 answered, 2 remaining)
Question 1+2.5 / -0.83 Marks
The National Pension System (NPS) and Atal Pension Yojana (APY) are regulated by:
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