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
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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.
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.
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.
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.