What is the UPS Pension Scheme? Understanding the UPS - A Complete Guide on Unified Pension Scheme

Unified Pension Scheme : India’s New Retirement Plan

The Unified Pension Scheme (UPS) is a new, optional pension scheme introduced by the Central Government of India under the National Pension System (NPS) specifically for Central Government employees. Operational from April 1, 2025, UPS aims to provide an “assured payout” after retirement, combining aspects of a guaranteed pension (similar to the Old Pension Scheme – OPS) with a contribution model (similar to NPS).

It is a “fund-based” system reliant on regular contributions from both employees and the Central Government. The scheme emphasizes financial security and stability for retirees, offering a defined benefit structure with inflation protection.

What is the UPS Pension Scheme Understanding the UPS - A Complete Guide on Unified Pension Scheme

II. Key Themes and Important Ideas

A. Purpose and Philosophy of UPS

Assured Payout: The primary goal of UPS is to offer an “assured payout after their retirement,” ensuring “financial security, stability, and dignity for government employees.” This addresses a key concern with the purely market-linked NPS.
Hybrid Model: UPS is described as a “Hybrid Pension Scheme” that “aims to provide a guaranteed pension similar to OPS but with a contribution model like NPS.” It seeks to strike a “balance between assured benefits and sustainable funding.”
Evolution of Pension Schemes: UPS represents a significant evolution in India’s retirement planning landscape, aiming to “streamline and simplify the retirement ecosystem.” It positions itself as a “middle ground” between the non-contributory, guaranteed OPS and the market-linked NPS.

B. Eligibility and Opt-in Process

UPS Eligibility

UPS Eligibility & Opt-In Guide

🎯 Target Beneficiaries

Only for Central Govt. employees under NPS. State govt. inclusion is under discussion.

📌 Eligibility Categories

Existing: In service as of 1st Apr 2025 under NPS
New Recruits: Joining on/after 1st Apr 2025
Retired: Retired on/before 31st Mar 2025 with ≥10 yrs service
Spouses: Of deceased eligible NPS subscribers

⏰ Option & Timelines

Deadline extended to 30 Sept 2025 for existing/past employees
New recruits: 30 days from joining

⚠️ Irrevocable Choice

Once chosen, UPS option is final. No response = continued under NPS.

📝 Forms & Submission

Form A1: New Recruits
Form A2: Existing Employees
Form B2: Past Retirees
Form B6: Spouses

Download from: npscra.nsdl.co.in

Submit: Online or to Head of Office/DDO

Target Beneficiaries: UPS is primarily for “Central Government employees covered under NPS.” While currently limited to central government employees, “implementation for state government employees is still under discussion.”
Eligibility Categories:Existing Employees: Central Government employees in service as of April 1, 2025, who are covered under NPS.
New Recruits: Central Government employees joining service on or after April 1, 2025.
Past Retirees: Central Government employees covered under NPS who retired on or before March 31, 2025 (superannuated after minimum 10 years of qualifying service, or retired under FR 56(j) not as a penalty).
Spouses of Deceased Subscribers: The legally wedded spouse of a deceased subscriber who was eligible under UPS.
Option and Timelines:Existing employees, past retirees, and spouses of deceased past retirees initially had three months from April 1, 2025 (until June 30, 2025) to opt in. This deadline has been “extended by three months i.e., upto 30th September 2025.”
New recruits must exercise their option “within thirty (30) days from the date of joining Central Government services.”
Irrevocable Choice: “Once exercised, the option to choose UPS is final and irrevocable.” If an eligible person fails to opt within the specified timeline, they “shall be deemed to have opted to continue under NPS without UPS option.”
Forms and Submission: Forms (A1 for new recruits, A2 for existing, B2 for retirees, B6 for spouses of deceased subscribers) can be downloaded from www.npscra.nsdl.co.in/ups.php and submitted “online or physically to the Head of Office / DDO.”

C. Contributions and Corpus Management

UPS Contributions – Tab View

UPS: Contributions & Corpus

Employee contributes 10% of Basic Pay + DA (includes non-practicing allowance if applicable).

Central Govt. contributes 18.5% of Basic + DA — higher than NPS (14%).

Monthly contributions are credited to the subscriber’s PRAN (Permanent Retirement Account Number). The corpus reflects total UPS value under this ID.

Only for individual corpus, not pooled.
Options: Govt. Securities (G), LC-25 (Conservative), LC-50 (Moderate)
Default pattern applies if no choice made
Change allowed: 1 pension fund + 2 investment choices per FY

An additional govt. contribution builds a pooled corpus, where investment decisions are made by the govt. only.

Notional value based on default investment pattern
If IC > BC: Surplus refunded to subscriber
If IC < BC: Subscriber may add funds or accept reduced payout
At retirement: IC up to BC is transferred to pooled corpus for pension authorization

Employee Contribution: Employees contribute “10% of their Basic Pay and Dearness Allowance (DA),” including non-practicing allowance if applicable.
Employer Contribution: The Central Government contributes “18.5% of basic salary + DA” to the pension fund. This is noted as “higher (18.5%) than in NPS” (NPS employer contribution is 14%).
Individual Corpus (IC): “The monthly contribution… shall be credited… to the individual Permanent Retirement Account Number (PRAN) of the UPS subscriber.” This corpus “means the value of corpus available in the PRAN of a subscriber under UPS.”
Investment Choices: “The employee can exercise investment choices for the individual corpus alone.” Options include “Government securities (Scheme G),” “Conservative Life Cycle Fund (LC-25),” or “Moderate Life Cycle Fund (LC-50).” If no choice is made, a “default pattern of investment will apply.” Subscribers can change their pension fund once and investment choice twice per financial year.
Pooled Corpus: An “additional Central Government contribution” builds a “pool corpus,” for which “investment decisions… will solely rest with Central Government.”
Benchmark Corpus (BC): This is a “notional value computed by CRA for comparison with individual corpus” based on “a ‘default pattern’ of investment.”
If “individual corpus… is more than the value/units of benchmark corpus,” the “surplus amount is returned to the subscriber.”
If “individual corpus… is less than the value/units of benchmark corpus,” the employee can “contribute additional funds before retirement to bridge the gap or accept proportionately reduced pension payouts.” At retirement, the IC “equivalent to the value or units of the benchmark corpus for authorization of assured payout” is transferred to the pool corpus.

D. Payouts and Benefits

Assured Monthly Payout:Full Payout: “@50% of 12 monthly average basic pay, immediately prior to superannuation.” This is payable “after a minimum 25 years of qualifying service.”
Proportionate Payout: “In case of lesser qualifying service period, proportionate payout would be admissible.”
Minimum Guaranteed Payout: “A minimum guaranteed payout of Rs. 10,000 per month shall be assured in case superannuation is after 10 years or more of qualifying service.”
Commencement of Payout:From the date of superannuation (for employees with 10+ years qualifying service).
From the date of retirement under FR 56(j).
For voluntary retirement (after 25+ years qualifying service), payout commences “from the date on which the employee would have superannuated if he had continued in service.”
Inflation Protection (Dearness Relief – DR): “Dearness Relief shall be available on the assured payout and family payout… worked out in the same manner as Dearness Allowance applicable to serving employees.” This is an important feature, similar to OPS, ensuring “inflation-linked adjustments.”
Family Payout: “Upon demise of a UPS Subscriber who was receiving admissible payout… the legally wedded spouse… shall receive for life, family pay out of sixty percent of the amount of the admissible payout or top-up amount drawn by the subscriber immediately prior to the demise.” Eligibility is for the “legally wedded spouse as on the date of superannuation.”
Lump Sum Payment: “A lumpsum payment will be allowed on superannuation @10% of monthly emoluments (basic pay + Dearness Allowance) for every completed six months of qualifying service.” This “will not affect the quantum of assured payout.” This is in addition to gratuity benefits.
Final Withdrawal Option: A subscriber “shall have an option of final withdrawal for an amount not exceeding sixty percent (60%) of the individual corpus or benchmark corpus, whichever is lower.” This withdrawal “subject to proportionate reduction in the assured payout payable.”
Partial Withdrawals during Service: Allowed up to “25% of self-contribution” after a “lock-in period of three years” for “specified purposes” (higher education/marriage of children, house purchase/construction, medical emergencies, disability, skill development). A “maximum of three times” is allowed, including NPS withdrawals.
Exclusions from Assured Payout: The option of assured payout “shall not be available” in cases of “superannuating before qualifying service of 10 years,” or “removal or dismissal from service or resignation of the employee.” In such cases, “contributions will follow NPS rules.”

E. Management and Tracking

PRAN: A “Permanent Retirement Account Number” is allocated to subscribers, under which “all the transactions are recorded.”
Updates: “The value or units in the individual corpus with investment choices… shall be informed… on a periodic basis. Alongside, the value or units of the benchmark corpus… will also be informed.”
Payout Authorization: The “UPS Payout Order (UPO)” is authorized by the “respective PAO and sent to the National Pension System Trust through CRA.” Payment of monthly payout from the Pool Corpus to the subscriber’s bank account.

F. Comparison: Old Pension Scheme (OPS) vs. National Pension System (NPS) vs. Unified Pension Scheme (UPS)

Feature	Old Pension Scheme (OPS)	National Pension System (NPS)	Unified Pension Scheme (UPS)
Type	Defined Benefit Scheme (Guaranteed pension)	Market-linked Investment Scheme	Hybrid Pension Scheme (Guaranteed pension with contribution model)
Applicable To	Central govt. employees before 22 Dec 2003	Govt. & private-sector employees, NRIs, self-employed	Central govt. employees (may extend to state employees)
Employee Contribution	None	10% of basic salary + DA	10% of basic salary + DA
Government Contribution	Fully funded by the government	14% of basic salary + DA	18.5% of basic salary + DA
Pension Calculation	Based on last drawn basic salary	Depends on investment performance and annuity plan	50% of average basic pay over last 12 months (for 25+ years service)
Lump Sum Payout	Not applicable	60% of corpus (tax-free), 40% annuitized	Yes, 1/10th of monthly emoluments for every 6 months of service (does not affect assured pension)
Family Pension	Yes – Full pension to spouse	Depends on annuity plan	60% of last pension drawn given to family
Inflation Protection	DA revisions twice a year	No guaranteed DA	Yes – Linked to Dearness Relief (DR)
Tax Benefits	No tax during service, pension is tax-free	Deductions under 80C, 80CCD(1B), 80CCD(2)	Details awaited; expected to be similar to OPS
Risk Factor	No risk – Fixed pension	Market-linked – No guaranteed pension	No market risk – Guaranteed pension
Gratuity Benefits	Yes	Yes	Yes (Retirement and Death Gratuity)
Investment Flexibility	Not applicable	Choice of fund managers and investment classes	Choice of asset allocation for Individual Corpus
Sustainability	High financial burden on govt.	Sustainable – Self-funded model	Balanced – Government-supported hybrid model

Key Distinctions of UPS over OPS and NPS

Dual Nature:
UPS combines the guaranteed pension of OPS with the contributory structure of NPS.
Assured Pension with Minimum Threshold:
- 50% of average basic pay over the last 12 months (for 25+ years of service).
- Minimum assured pension of ₹10,000 per month after 10 years of qualifying service.
Inflation Protection:
UPS includes Dearness Relief (DR) adjustments, unlike NPS which lacks automatic inflation indexing.
Lump Sum Payout:
UPS allows a tax-free lump sum at superannuation (1/10th of monthly emoluments per 6 months of service) without reducing the assured monthly pension, unlike NPS where a 60% lump sum reduces the corpus for annuity.
Higher Employer Contribution:
- UPS: 18.5% of basic pay + DA
- NPS: 14% of basic pay + DA
Reduced Risk:
UPS offers guaranteed returns and protection from market volatility, addressing the main concern of NPS subscribers.

III. Important Facts and Dates

Announced On: August 24, 2024
Notified On: January 24, 2025
Implementation Date: April 1, 2025
PFRDA Regulations Notified: March 19, 2025 (PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025)
Option Exercise Deadline (Extended): September 30, 2025, for eligible existing employees, past retirees, and legally wedded spouses of deceased past retirees. (Original deadline was June 30, 2025).
Option Exercise Deadline (New Recruits): Within 30 days from the date of joining Central Government services.
Minimum Qualifying Service for Full Assured Payout: 25 years.
Minimum Qualifying Service for Minimum Guaranteed Payout: 10 years.
Minimum Guaranteed Payout Amount: ₹10,000 per month.
Assured Payout Rate: 50% of 12 monthly average basic pay immediately prior to superannuation.
Employee Contribution Rate: 10% of Basic Pay + Dearness Allowance.
Employer Contribution Rate: 18.5% of Basic Pay + Dearness Allowance.
Family Payout Rate: 60% of the admissible payout or top-up amount received by the deceased subscriber.
Lump Sum Payment Calculation: 1/10th of monthly emoluments for every completed six months of qualifying service.
Maximum Final Withdrawal: 60% of Individual Corpus or Benchmark Corpus (whichever is lower), subject to proportionate reduction in assured payout.
Partial Withdrawal Limit: Up to 25% of self-contribution, maximum three times, after a three-year lock-in.

Which Pension Scheme should I Choose ?

Choosing between NPS and UPS depends on your specific needs and preferences. Here’s a breakdown of the key factors to consider:

The Unified Pension Scheme (UPS) is a newly approved pension initiative by the Indian government, set to take effect on April 1, 2025. This scheme is designed for central government employees who joined after January 1, 2004, and aims to provide a more secure and predictable retirement income compared to the existing National Pension System (NPS).

Key Features of the Unified Pension Scheme

Guaranteed Pension: Employees will receive a pension amounting to 50% of their average salary from the last 12 months of service, provided they have completed 25 years of service.

Increased Government Contribution: The government’s contribution to the pension will rise from 14% to 18.5% of the employee’s salary.

Inflation Indexation: Pensions will be adjusted for inflation, ensuring that the purchasing power of retirees is maintained over time.

Family Pension Provisions: The scheme includes provisions for family pensions, ensuring financial support for dependents in the event of the pensioner’s death.

Lump Sum Payment: Upon retirement, employees will also receive a lump sum payment in addition to their pension, calculated based on their service duration.

Option to Switch: Employees currently enrolled in the NPS will have the option to transition to the UPS, which is expected to benefit over 23 lakh central government employees.

Comparison with Existing Schemes

The UPS is seen as a significant improvement over the NPS, which requires a portion of the pension fund to be invested in annuities, often yielding lower returns. The guaranteed nature of the UPS pension is viewed as a safer and more attractive alternative for employees, particularly in light of the low annuity rates in India.

The introduction of the UPS is part of broader pension reforms aimed at simplifying and unifying pension management for government employees, ensuring equitable benefits across various sectors

NPS (National Pension System):

Flexibility: Offers various investment options and allows you to control your retirement savings.
Tax Benefits: Provides tax deductions on contributions.
Portability: Can be continued even if you change jobs.
Risk: Involves market-linked risks, meaning your returns may fluctuate.
Retirement Benefits: Requires a portion of your accumulated funds to be used to purchase an annuity.

UPS (Unified Pension Scheme):

Guaranteed Pension: Provides a fixed pension based on your last drawn salary and length of service.
No Investment Risk: Ensures a regular income after retirement.
Government Liability: The government is responsible for funding and managing the scheme.
Limited Flexibility: Offers fewer investment options and may not be portable.
Financial Burden: Can be a burden on the government, especially with increasing life expectancy.

Key considerations:

Risk Tolerance: If you’re comfortable with market-linked risks, NPS might be suitable. If you prefer a guaranteed pension, OPS could be a better option.
Retirement Goals: Consider your desired retirement lifestyle and the amount of income you need.
Tax Implications: Assess the tax benefits of each scheme based on your income bracket.
Job Security: If you’re likely to change jobs frequently, NPS’s portability can be advantageous.

Additional Factors:

Age: Younger individuals may have more time to recover from market fluctuations and can benefit from NPS’s growth potential.
Health: If you have health concerns, a guaranteed pension from OPS might provide more security.
Financial Literacy: If you’re comfortable managing investments, NPS might be a better fit.

It’s recommended to consult with a financial advisor to get personalized advice based on your specific circumstances. They can help you weigh the pros and cons of each scheme and make an informed decision.

UPS explained in 12 points

1. Retirees with a minimum of 25 years of service will receive a pension equal to 50% of their average basic pay during the last 12 months of their employment.

2. For those with less than 25 years of service, the pension will be calculated proportionally based on their service period, with a minimum of 10 years required.

3. The Government is increasing its contribution from 14% to 18.5%. Employee contribution will not increase.

4. To ensure financial security for the pensioner’s loved ones, a family pension of 60% of the deceased employee’s pension will be paid to their family.

5. To ensure a basic level of financial support upon retirement, employees with at least 10 years of service will receive a minimum pension of ₹10,000 per month.

6. To protect pensioners from the effects of inflation, pensions will be adjusted periodically to reflect changes in the All India Consumer Price Index for Industrial Workers (AICPI-IW), similar to the Dearness Relief provided to current employees.

7. Upon retirement, employees will receive a lump-sum payment in addition to their gratuity. This payment will be calculated as 1/10th of their monthly pay and dearness allowance (DA) as of their retirement date for every completed six months of service.

Importantly, this lump-sum payment will not affect the amount of their guaranteed pension.

8. Provisions of UPS will apply to past retirees of NPS (who have already superannuated). Arrears for past period will be paid with interest at PPF rates.

9. The Unified Pension Scheme (UPS) will be offered as an option to both current employees who are already enrolled in the National Pension Scheme (NPS) or Voluntary Retirement Scheme (VRS) with NPS, and to future employees.

Once an employee chooses between UPS and NPS, their decision will be irrevocable.

10. UPS is being implemented by the Central Government. Benefiting ~23 lakh Central Government employees.

11. The Unified Pension Scheme (UPS) has been designed in a way that can be easily adopted by state governments.

12. If implemented by state governments, this scheme could potentially benefit over 9 million government employees who are currently enrolled in the National Pension Scheme (NPS).

FAQs

1. What is the Unified Pension Scheme (UPS) and when does it become operational?

The Unified Pension Scheme (UPS) is an optional pension program introduced by the Central Government under the National Pension System (NPS) specifically for Central Government employees. Its primary goal is to provide an assured monthly payout after retirement. Unlike a purely market-linked scheme, UPS is a “fund-based” system that relies on regular and timely contributions from both the employee (10% of basic pay + Dearness Allowance) and the employer (18.5% of basic pay + Dearness Allowance) to build a corpus for the payout. The UPS officially became operational on April 1, 2025.

2. Who is eligible to opt for the Unified Pension Scheme (UPS)?

The UPS is primarily for Central Government employees covered under NPS. This includes:

Existing Central Government employees: Those in service as of April 1, 2025, who are already covered under NPS.
Newly recruited Central Government employees: Individuals joining service on or after April 1, 2025.
Central Government employees who retired prior to March 31, 2025: This applies to those who were covered under NPS and superannuated after a minimum of 10 years of qualifying service or retired under Fundamental Rules 56(j) (not as a penalty).
Legally wedded spouses of deceased subscribers: If a subscriber eligible for UPS passed away before exercising the option, their legally wedded spouse can opt for the scheme.

The option to switch to UPS is final and irrevocable once exercised. The deadline for existing employees, past retirees, and spouses of deceased retirees to exercise this option has been extended to September 30, 2025. Newly recruited employees have 30 days from their joining date to opt.

3. How is the assured payout calculated under the UPS, and are there any minimum guarantees?

The assured payout under UPS is calculated at 50% of the 12-month average basic pay immediately prior to superannuation, provided the employee has a minimum of 25 years of qualifying service. For those with less than 25 years but at least 10 years of qualifying service, a proportionate payout is admissible.

Additionally, a minimum guaranteed payout of Rs. 10,000 per month is assured for employees who superannuate after 10 years or more of qualifying service, subject to timely and regular contributions and no withdrawals. This guaranteed minimum acts as a safety net.

4. What are the key differences between the Unified Pension Scheme (UPS) and the National Pension System (NPS)?

Here’s a breakdown of the major differences between UPS and NPS:

Feature	Unified Pension Scheme (UPS)	National Pension System (NPS)
Type	Hybrid Pension Scheme (Guaranteed pension with contribution model)	Market-linked Investment Scheme
Applicable To	Central Government employees (may extend to state employees)	Government and private-sector employees, NRIs, self-employed
Employer Contribution	18.5% of basic salary + DA	14% of basic salary + DA (for government employees)
Employee Contribution	10% of basic salary + DA	10% of basic salary + DA
Pension Calculation	50% of average basic pay over the last 12 months (for service > 25 years)	Depends on investment performance and chosen annuity plan
Lump Sum Payout	Yes, 1/10th of monthly emoluments for every 6 months of service	60% of corpus (tax-free); 40% mandatorily annuitized
Family Pension	60% of the last pension drawn, given to family	Depends on annuity plan chosen
Inflation Protection	Yes, inflation-linked adjustments via Dearness Relief (DR)	No automatic inflation adjustment
Guaranteed Pension	Yes, minimum guaranteed monthly pension (e.g., ₹10,000)	No guaranteed pension, market-linked
Investment Flexibility	Limited – employee can choose from predefined options	High – freedom to choose fund manager and investment asset class
Risk Factor	No market risk, returns and pension are guaranteed	Market risk involved, returns are not guaranteed
Tax Benefits	Expected to follow Old Pension Scheme-like benefits (details awaited)	Deductions under Sections 80C, 80CCD(1B), and 80CCD(2)

What are “Individual Corpus” and “Benchmark Corpus” in the context of UPS, and how do they impact payouts?

In the Unified Pension Scheme (UPS), the terms Individual Corpus and Benchmark Corpus play a crucial role in determining pension payouts:

✅ Individual Corpus (IC):

Refers to the total value of an employee’s accumulated funds in their Permanent Retirement Account Number (PRAN).
Employees can choose from limited, government-approved investment options.
This corpus builds up through employee and employer contributions over the years.

✅ Benchmark Corpus (BC):

A notional or standard value computed by the Pension Fund Regulatory and Development Authority (PFRDA).
It assumes standard investment patterns and consistent contributions.
Serves as a reference point for determining the adequacy of retirement savings.

💡 How They Impact Payouts:

At the time of retirement, the employee’s Individual Corpus is compared with the Benchmark Corpus.

If IC ≥ BC:
- The full assured payout is granted.
- Any excess amount (IC – BC) is returned to the subscriber or optionally reinvested.
If IC < BC:
- The assured payout is proportionately reduced.
- However, the employee has the option to top up the corpus before retirement to match the benchmark and secure full benefits.

This mechanism ensures that the pension remains sustainable and performance-linked, yet also guarantees a minimum payout for employees who meet or exceed benchmark saving targets.

6. Are there any provisions for withdrawals under UPS, both partial and at retirement?

Yes, UPS allows for both partial withdrawals during service and a final withdrawal at retirement:

Partial Withdrawals During Service: Employees can make partial withdrawals up to three times during their service period. Each withdrawal is limited to 25% of the employee’s self-contributions (excluding returns) and is allowed only after a three-year lock-in period from the date of enrollment under UPS (or NPS, whichever is earlier). These withdrawals are permitted for specific purposes such as higher education or marriage of children, purchase/construction of a residential house, medical emergencies, disability-related expenses, and skill development. Subscribers also have the option to replenish partially withdrawn amounts before retirement.
Final Withdrawal at Retirement: Upon superannuation or retirement, a UPS subscriber has the option of a final withdrawal of up to 60% of their individual corpus or benchmark corpus, whichever is lower. However, exercising this option will lead to a proportionate reduction in the assured monthly payout payable to the subscriber. This final withdrawal is admissible on the date of superannuation, voluntary retirement, or retirement under Fundamental Rules 56(j).

7. What additional benefits are provided under the Unified Pension Scheme (UPS) besides the assured monthly payout?

Beyond the assured monthly payout, the UPS offers several additional benefits:

Dearness Relief (DR): Dearness Relief is applicable on both the assured payout and the family payout. It is worked out in the same manner as Dearness Allowance for serving employees and is payable only when the payout commences, providing protection against inflation.
Lump Sum Payment: Upon superannuation, employees are allowed a lump sum payment calculated at 10% of their monthly emoluments (basic pay + Dearness Allowance) for every completed six months of qualifying service. This lump sum payment does not affect the quantum of the assured monthly payout.
Family Payout: In the event of a UPS subscriber’s demise while receiving an admissible payout, their legally wedded spouse will receive a family payout equivalent to 60% of the amount the subscriber was drawing immediately prior to their demise, for life.
Gratuity Benefits: UPS subscribers are eligible for both retirement gratuity and death gratuity, similar to previous pension schemes. Retirement gratuity is a lump-sum payment upon retirement after a minimum of 5 years of service, while death gratuity is a one-time lump sum payment to the family/nominee if the employee dies during service.

8. Under what circumstances will the assured payout option under UPS not be available to Central Government employees?

The option of assured payout under UPS will not be available to Central Government employees in the following circumstances:

Superannuating before completing 10 years of qualifying service: Employees who retire before reaching the minimum service period of 10 years are not eligible for the assured payout.
Removal or dismissal from service: If an employee is removed or dismissed from service due to disciplinary or administrative reasons, they will not receive UPS benefits.
Resignation of the employee: Employees who resign from service before retirement will also forfeit their eligibility for the assured payout under UPS. In such cases, their contributions will be treated as per NPS rules, and government contributions cease.