A government servant compulsorily retired from service as a penalty, may be granted, benefits at a rate not less than two thirds and not more than full admissible payout to him out of the individual corpus under the Unified Pension Scheme as per UPS regulations.

Assured payouts arising out of the individual corpus under the Unified Pension Scheme, shall be forfeited in case of dismissal or removal. Further, the accumulated pension wealth in the individual corpus under the Unified Pension Scheme of the subscriber, shall be payable in lump sum to the subscriber or in the event of death of subscriber, to the legally wedded spouse, or in the absence thereof to the legal heir(s).

Such subscriber shall not be paid any assured payout arising out of the individual corpus under the Unified Pension Scheme. Further, such subscriber shall be entitled to the accumulated pension wealth in the individual corpus under the Unified Pension Scheme, to be paid in lump sum.

Further, on conclusion of departmental or judicial proceedings, where the government servant is fully exonerated from all charges, the government servant or legally wedded spouse, as the case may be, shall have an option of availing assured payout under the Unified Pension Scheme by paying back the lump sum amount so availed.

If the spouse is charged with the offence of murdering the subscriber or for abetting the commission of such an offence, his or her claim to receive family payout shall remain suspended till the conclusion of the criminal proceedings instituted against him or her.

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.

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

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.

1. 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.
2. 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.

1. 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, Page 18 of 19
2. the period of qualifying service;
3. details of joint bank account of the UPS Subscriber and legally wedded spouse as on date of superannuation/retirement;
4. percentage of final withdrawal upto sixty percent of individual corpus or benchmark corpus, whichever is lower, as opted by UPS Subscriber;
5. details of benefits applicable under UPS as specified under these regulations, such as:
   1. i. lumpsum payment;
   2. ii. excess, if any, of individual corpus vis-à-vis benchmark corpus
   3. iii. assured payout;
   4. iv. admissible payout;
   5. v. top-up amount (applicable for retirees on or after 31.03.2025)
   6. vi. family payout;
   7. vii. applicable dearness relief.
6. the date of commencement of admissible payout to subscriber.

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.

1. 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. 
2. 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. 
3. 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. 
4. 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. 

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-P&PW(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) 

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.