Unified Pension Scheme (UPS) vs Old Pension Scheme (OPS): A Comprehensive Comparison
| Aspect | Old Pension Scheme (OPS) | Unified Pension Scheme (UPS) |
|---|---|---|
| Effective From | Pre-2004 | April 1, 2025 |
| Type of Scheme | Defined Benefit Pension System | Contributory Pension System |
| Employee Contribution | None | 10% of salary |
| Government Contribution | Fully funded by the government | 18.5% of salary |
| Pension Calculation | 50% of last drawn salary | 50% of the average basic pay over the last 12 months before retirement |
| Minimum Pension | Not explicitly defined | ₹10,000 per month for employees with at least 10 years of service |
| Family Pension | Typically lower percentage of the employee's pension | 60% of the employee's pension |
| Inflation Adjustment | Dearness relief (less standardized) | Inflation indexation based on AICPI-IW |
| Lump Sum Payment | Not provided | Provided at retirement |