FAQs related to operational issues on Payment of Benefits under UPS

(CGA, DoE, MoF O.M. No. TA-3-07001/3/2025-TA-CGA/e-19475/341 dated 17.09.2025)

FAQs related to operational issues on Payment of Benefits under UPS

72. How are UPS benefits claimed after retirement/death of the subscriber?

The subscriber or legally wedded spouse as on date of superannuation/retirement of the subscriber, as the case may be, must submit the relevant application forms to the Head of Office or DDO.

To be Submitted by	Form No.	Conditions to apply
Subscriber	B1	who superannuated or retired on or after 1st April 2025
Subscriber	B2	who superannuated or retired on or before 1st April 2025
In case of Death of the subscriber
Spouse of the deceased subscriber	B3	who superannuated or retired on or after 1st April 2025 and eligible for UPS benefits and subscriber had already availed benefits under UPS
Spouse of the deceased subscriber	B4	who superannuated or retired on or before 31st March 2025 and eligible for UPS benefits and subscriber had already availed benefits under UPS
Spouse of the deceased subscriber	B5	who superannuated or retired on or after 1st April 2025and eligible for UPS benefits and subscriber had not availed benefits under UPS
Spouse of the deceased subscriber	B6	Who superannuated or retired on or before 31st March 2025 and eligible for UPS benefits and subscriber had not availed benefits under UPS

73. What is UPS Payout Order (UPO)?

The UPS Payout order contains the details of the benefits payable to a UPS Subscriber.

74. Who will authorize UPS payout order?

The UPO shall be authorized by the respective PAO and sent to the National Pension System Trust through CRA.

A copy of such UPS Payout Order shall simultaneously be made available to the UPS Subscriber or the legally wedded spouse as on date of superannuation/retirement, as the case may be.

a) Upon receipt of UPS Payout Order by National Pension System Trust together with option of final withdrawal, if any, by the UPS subscriber, the National Pension System Trust shall authorize the release of UPS benefits as specified under these regulations and authorise the transfer of the balance in the individual corpus to pool corpus.

b) The National Pension System Trust shall ensure payment of monthly payout from the Pool Corpus to the bank account of the UPS subscriber and periodic release of applicable dearness relief. For this purpose, CRA shall intimate to the pension fund to effect redemption from the Pool Corpus for payment of such payout to the subscriber.

75. What details are covered in UPS Payout Order (UPO)?

a) requisite details of UPS Subscriber including particulars of legally wedded spouse as on date of superannuation/retirement of such subscriber as appearing in the service records,

b) the period of qualifying service;

c) details of joint bank account of the UPS Subscriber and legally wedded spouse as on date of superannuation/retirement;

d) percentage of final withdrawal upto sixty percent of individual corpus or benchmark corpus, whichever is lower, as opted by UPS Subscriber;

e) details of benefits applicable under UPS as specified under these regulations, such as:

i. lumpsum payment;
ii. excess, if any, of individual corpus vis-à-vis benchmark corpus .
iii. assured payout;
iv. admissible payout;
v. top-up amount (applicable for retirees on or after 31.03.2025)
vi. family payout;
vii. applicable dearness relief.

f) the date of commencement of admissible payout to subscriber.

76. How UPS Payout Order and monthly payouts shall be processed?

NPS Trust shall authorize release of benefits upon receipt of UPS Payout Order.

Further, the NPS Trust shall ensure payment of monthly payout from the Pool Corpus to the bank account of the UPS Subscriber and periodic release of applicable dearness relief.

77. What is the role of nodal offices and the CRA in processing of claims under UPS?

a) The CRA shall make available the details of partial withdrawals made if any, by superannuated or retired employee, and value of individual corpus and benchmark corpus as on the date of superannuation or retirement to DDO and PAO in their CRA system login.

b) The DDO shall update the records in CRA system after obtaining necessary details, if required from Head of Office and forward the same to PAO for its authorization in such system.

c) Based on the verification of subscriber details by Head of Office, the PAO shall issue a UPS Payout order, as per Form B1, B3 or B5, as applicable, containing details as specified under regulation 20.

d) Upon receipt of UPS Payout Order by National Pension System Trust together with option of final withdrawal if any by the UPS subscriber, the National Pension System Trust shall authorise the release of UPS benefits as specified under these regulations and authorise the transfer of the balance in the individual corpus to pool corpus.

The National Pension System Trust shall ensure payment of monthly payout from the Pool Corpus to the bank account of the UPS subscriber and periodic release of applicable dearness relief. For this purpose, CRA shall intimate to the pension fund to effect redemption from the Pool Corpus for payment of such payout to the subscriber.

78. Is gratuity payable to central government employees covered under UPS?

The Central Government employees covered under the Unified Pension Scheme shall be eligible for benefit of ‘Retirement gratuity and Death gratuity’ under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021.

(Refer to Office Memorandum No. 57/01/2025-P6PW(B)/UPS/10498 dated 18.06.2025 issued by the Department of Pension and Pensioners’ Welfare, Ministry of Personnel, P.G. and Pensions, Government of India)

79. What are the tax provisions related to UPS?

As per the Office Memorandum F. No. 178/4/2025-ITA-1 dated 02.07.2025 issued by the Central Board of Direct Taxes, the provisions of Section 80CCD (1), 80CCD (1B), 80CCD(2), 80CCD(3), 80CCD(4), 10(12A) and 10(12B) of the Income Tax Act, 1961 would be applicable mutatis-mutandis to Unified Pension Scheme (UPS) to the extent of limits as provided in the aforementioned Sections.