Pension
Three pension regimes currently coexist for Central Government employees: the Old Pension Scheme (OPS) for those who joined before 1 January 2004, the National Pension System (NPS) for those who joined on or after that date, and the Unified Pension Scheme (UPS) introduced in August 2024 as a one-time switch option for NPS subscribers. This section covers each regime with eligibility, contribution structure, and exit rules.
The three regimes at a glance
| Feature | OPS | NPS | UPS |
|---|---|---|---|
| Type | Defined benefit | Defined contribution | Hybrid (defined benefit + contributory) |
| Employee contribution | None | 10% of basic + DA | 10% of basic + DA |
| Government contribution | None (Consolidated Fund) | 14% of basic + DA | 18.5% of basic + DA |
| Pension | 50% of last drawn basic | From annuity on 40% corpus | 50% of avg basic last 12 months (25+ years service) |
| Inflation indexation | Yes (DR) | No (fixed annuity) | Yes (DR) |
| Family pension | 30% normal / 50% enhanced | Family pension option (post 30 Mar 2021 OM) | 60% of pension |
Latest articles
What we cover
NPS for Central Government employees, the UPS switch decision, family pension under CCS (Pension) Rules 2021, gratuity, commutation of pension, and the rules for pre-retirement and post-retirement contingencies. Each article is cross-checked against the source DoPPW Office Memorandum, the PFRDA Regulations, and (where relevant) the latest court interpretation.
All articles in this section (3)
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Family Pension: Eligibility, Rates, and Special Provisions Under CCS (Pension) Rules
Who qualifies as family, the 30%/50% rates, the enhanced rate window, the rules for parents, divorced and disabled daughters, and the order of payment.
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Unified Pension Scheme (UPS) vs NPS: Should Central Government Employees Switch?
UPS notified in 2024 gives NPS subscribers a one-time option for a guaranteed assured pension. The structure, the formula, the eligibility cases, and how to decide.
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National Pension System (NPS): Complete Guide for Central Government Employees
How NPS works for Central Government employees recruited on or after 1 January 2004: Tier I and Tier II structure, contribution rates, fund managers, vesting age, and exit rules. With a worked corpus projection.