Ø Introduction
· The
Unified Pension Scheme (UPS) is introduced as an option under the National
Pension System (NPS).
· It
is applicable to Central Government employees covered under NPS who opt for
this scheme.
· The
scheme takes effect from April 1, 2025.
Ø Eligibility
· Employees
must be part of NPS and choose UPS.
Assured
payouts are applicable in three cases:
· Superannuation
after at least 10 years of service.
· Retirement
under FR 56(j) (not as a penalty).
· Voluntary
Retirement (VRS) after 25 years of service.
v Employees
dismissed, removed, or resigned are not eligible for assured payouts.
Benefits
Under UPS
Ø Assured
Monthly Pension:
· 50%
of the average basic pay (last 12 months) for those with 25+ years of service.
· Proportionate
payout for those with less than 25 years of service.
· Minimum
assured pension of ₹10,000 per month for those retiring after at least 10 years
of service.
· In
case of VRS after 25 years, pension starts from the date of superannuation.
Ø Family
Pension:
· In
case of the employee’s death, 60% of the pension is given to the legally wedded
spouse.
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Dearness
Relief (DR):
· DR
is applicable to both the pensioner and family pensioner.
Lump-Sum
Payment on Retirement:
· 10%
of monthly emoluments (Basic Pay + DA) per 6 months of completed service.
· This
does not affect the assured pension.
Contribution
Structure
Ø Two
types of corpus:
· Individual
Corpus (Employee + Government contribution).
· Pool
Corpus (Additional Government contribution).
Contribution
Rates:
· Employee:
10% of Basic Pay + DA.
· Government
(matching): 10% of Basic Pay + DA.
· Additional
Government Contribution: 8.5% of Basic Pay + DA (for Pool Corpus).
Investment
& Fund Management
· Employees
can choose investment options for the Individual Corpus.
· The
Government manages the Pool Corpus.
· If
no investment choice is made, a default investment pattern applies.
· Retirement
Process
Corpus
Transfer:
· On
retirement, the NPS corpus is transferred to the UPS corpus.
· The
amount is matched with a benchmark corpus.
· If
the individual corpus is less than the benchmark, the employee can contribute
more.
· If
the individual corpus is higher, the extra amount is credited to the employee.
Partial
Withdrawals: If an employee has made withdrawals, it
impacts the pension amount.
Employees
who retired before UPS implementation:
· They
can opt-in.
· Top-up
amounts will be provided as determined by Pension Fund Regulatory and
Development Authority (PFRDA).
· Interest
will be paid on past periods.
Other
Conditions
· Employees
who choose UPS cannot claim any additional benefits later.
· Special
provisions will be made for employees with disciplinary proceedings.
Multiple Choice Questions
1.
What is the primary objective of the
Unified Pension Scheme?
A) To
replace the National Pension System
B) To
provide an assured payout option under the National Pension System
C) To
eliminate pension benefits for government employees
D) To
privatize pension funds
Answer: B) To
provide an assured payout option under the National Pension System
2.
What is the minimum qualifying service
required for an employee to be eligible for assured payout under the Unified
Pension Scheme?
A) 5
years
B) 10
years
C) 15
years
D) 25
years
Answer: B) 10
years
3.
Under the Unified Pension Scheme, what
percentage of the 12-month average basic pay will be given as full assured
payout after superannuation?
A) 40%
B) 50%
C) 60%
D) 75%
Answer: B) 50%
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4.
What is the minimum guaranteed payout
under the Unified Pension Scheme for an employee who retires after at least 10
years of qualifying service?
A) ₹5,000
per month
B) ₹7,500
per month
C) ₹10,000
per month
D) ₹15,000
per month
Answer: C) ₹10,000
per month
5.
Which type of employees are NOT eligible
for assured payout under the Unified Pension Scheme?
A) Employees
who voluntarily retire after 25 years of service
B) Employees
who are dismissed from service
C) Employees
who retire under FR 56 (j)
D) Employees
who superannuate after 10 years of service
Answer: B)
Employees who are dismissed from service
6.
How much additional contribution will the
Central Government make under the pool corpus for supporting assured payouts?
A) 5%
of basic pay + Dearness Allowance
B) 8.5%
of basic pay + Dearness Allowance
C) 10%
of basic pay + Dearness Allowance
D) 12%
of basic pay + Dearness Allowance
Answer: B) 8.5% of
basic pay + Dearness Allowance
7.
How frequently will an employee be
informed about the value of their individual corpus under the Unified Pension
Scheme?
A) Monthly
B) Quarterly
C) Annually
D) Periodically
as determined by the authority
Answer: D)
Periodically as determined by the authority
8.
Under what conditions will an employee's
family receive 60% of the assured payout?
A) If
the employee resigns from service
B) If
the employee is dismissed from service
C) If
the employee dies after superannuation
D) If
the employee does not opt for the Unified Pension Scheme
Answer: C) If the
employee dies after superannuation
9.
What is the effective date for the
operationalization of the Unified Pension Scheme?
A) 1st
January 2025
B) 1st
March 2025
C) 1st
April 2025
D) 1st
July 2025
Answer: C) 1st
April 2025
10.
Under the Unified Pension Scheme, how much is
the employee required to contribute towards their individual corpus?
A) 5%
of basic pay + DA
B) 8.5%
of basic pay + DA
C) 10%
of basic pay + DA
D) 12%
of basic pay + DA
Answer: C) 10% of
basic pay + DA
11.
What happens to an employee's National
Pension System (NPS) corpus if they opt for the Unified Pension Scheme?
A) It
remains in the NPS account
B) It
is transferred to their individual corpus under the Unified Pension Scheme
C) It
is forfeited by the government
D) It
is refunded to the employee in full
Answer: B) It is
transferred to their individual corpus under the Unified Pension Scheme
12.
Who regulates the investment choices of
the individual corpus under the Unified Pension Scheme?
A) Reserve
Bank of India (RBI)
B) Pension
Fund Regulatory and Development Authority (PFRDA)
C) Ministry
of Finance
D) Securities
and Exchange Board of India (SEBI)
Answer: B) Pension
Fund Regulatory and Development Authority (PFRDA)
13.
What happens if an employee does not
select an investment choice for their individual corpus?
A) Their
contribution will be returned
B) It
will be invested based on the ‘default pattern’ defined by PFRDA
C) It
will be transferred to the pool corpus
D) They
will lose their pension benefits
Answer: B) It will
be invested based on the ‘default pattern’ defined by PFRDA
14.
If an employee voluntarily retires after
25 years of qualifying service, when does the assured payout start?
A) Immediately
upon retirement
B) After
5 years of retirement
C) On
the date they would have reached superannuation age
D) After
10 years of retirement
Answer: C) On the
date they would have reached superannuation age
15.
What happens if an employee's individual
corpus is less than the benchmark corpus at retirement?
A) The
employee must arrange additional contributions
B) The
employee will not receive any pension
C) The
government will cover the difference
D) The
payout will be reduced proportionally
Answer: D) The
payout will be reduced proportionally
16.
What is the lump sum payment an employee
receives at superannuation based on?
A) 10%
of monthly emoluments for every completed six months of qualifying service
B) 20%
of the total pension corpus
C) A
fixed amount set by the government
D) Only
the employee’s contributions without employer matching
Answer: A) 10% of
monthly emoluments for every completed six months of qualifying service
17.
Which employees are eligible to switch to
the Unified Pension Scheme?
A) Only
new government employees joining after 2025
B) Only
employees who joined after 2019
C) Both
existing and future employees under the National Pension System (NPS)
D) Only
employees who have completed 25 years of service
Answer: C) Both
existing and future employees under the National Pension System (NPS)
18.
What is the role of the pool corpus under
the Unified Pension Scheme?
A) To
manage investment for employees
B) To
provide assured payouts by pooling additional government contributions
C) To
distribute retirement benefits equally among all employees
D) To
replace the individual corpus
Answer: B) To
provide assured payouts by pooling additional government contributions
19.
If an employee passes away after
retirement, how much of the assured payout is given to their legally wedded
spouse?
A) 100%
of the payout
B) 80%
of the payout
C) 60%
of the payout
D) No
payout is provided
Answer: C) 60% of
the payout
20.
Can an employee opt out of the Unified
Pension Scheme once they have chosen it?
A) Yes,
within the first 5 years
B) No,
the option is final once exercised
C) Yes,
by submitting a request before retirement
D) Only
if they switch to private-sector employment
Answer: B) No, the
option is final once exercised
21.
Who determines the ‘benchmark corpus’ for
employees opting for the Unified Pension Scheme?
A) Ministry
of Finance
B) Pension
Fund Regulatory and Development Authority (PFRDA)
C) Employees
themselves
D) Reserve
Bank of India
Answer: B) Pension
Fund Regulatory and Development Authority (PFRDA)
22.
What happens if an employee's individual
corpus is higher than the benchmark corpus?
A) The
extra amount is forfeited
B) The
excess amount is credited to the employee’s bank account
C) The
government retains the excess amount
D) The
employee receives an additional pension payout
Answer: B) The
excess amount is credited to the employee’s bank account
23.
If an employee is removed or dismissed
from service, what happens to their contributions?
A) They
receive the full amount with interest
B) They
forfeit their pension benefits
C) They
are eligible for assured payout under the Unified Pension Scheme
D) They
must transfer their funds to another pension scheme
Answer: B) They
forfeit their pension benefits
24.
What is the maximum duration considered
for qualifying service under the payout formula?
A) 20
years
B) 30
years
C) 25
years
D) 35
years
Answer: C) 25
years
25.
What is the primary difference between the
individual corpus and the pool corpus under the Unified Pension Scheme?
A) The
individual corpus is based on employee and government contributions, while the
pool corpus consists of additional government contributions
B) The
individual corpus is managed by PFRDA, while the pool corpus is managed by RBI
C) The
individual corpus can only be accessed after retirement, whereas the pool
corpus can be accessed anytime
D) The
individual corpus is fixed, while the pool corpus is variable
Answer: A) The
individual corpus is based on employee and government contributions, while the
pool corpus consists of additional government contributions
26.
How
is Dearness Relief (DR) calculated under the Unified Pension Scheme?
A) It
is a fixed amount determined by the Ministry of Finance
B) It
is calculated the same way as Dearness Allowance (DA) for serving employees
C) It
depends on the employee’s contributions
D) It
is decided by the employer
Answer: B) It is
calculated the same way as Dearness Allowance (DA) for serving employees
27.
What happens if an employee retires with
missing contributions that were not made up before retirement?
A) Their
assured payout is reduced proportionally
B) The
government covers the missing amount
C) The
employee is ineligible for pension benefits
D) Their
pension starts later than usual
Answer: A) Their
assured payout is reduced proportionally
28.
Under the Unified Pension Scheme, what
happens if an employee has less than 10 years of service?
A) They
receive a reduced pension
B) They
are not eligible for the scheme
C) They
receive full assured payout
D) They
must transfer their pension to another scheme
Answer: B) They
are not eligible for the scheme
29.
What is the purpose of the ‘default
pattern’ of investment under the Unified Pension Scheme?
A) To
ensure uniform returns for all employees
B) To
give employees full control over their investments
C) To
provide a standard investment approach for those who do not choose an
investment option
D) To
protect government funds from misuse
Answer: C) To
provide a standard investment approach for those who do not choose an
investment option
30.
Which government entity is responsible for
issuing regulations for the operation of the Unified Pension Scheme?
A) Ministry
of Labour and Employment
B) Pension
Fund Regulatory and Development Authority (PFRDA)
C) Reserve
Bank of India (RBI)
D) Employees’
Provident Fund Organisation (EPFO)
Answer: B) Pension
Fund Regulatory and Development Authority (PFRDA)
31.
Rajesh, a central government employee, has
completed 28 years of qualifying service and is planning for voluntary
retirement. When will his assured payout start under the Unified Pension
Scheme?
A) Immediately
upon retirement
B) After
5 years of retirement
C) On
the date he would have reached superannuation age
D) After
10 years of retirement
Answer: C) On the
date he would have reached superannuation age
32.
Meena, a government employee, opted for
the Unified Pension Scheme. However, at the time of retirement, her individual
corpus is ₹42,00,000, while the benchmark corpus is ₹50,00,000. What will
happen to her assured payout?
A) She
will receive the full assured payout
B) Her
assured payout will be reduced proportionally
C) The
government will cover the ₹8,00,000 gap
D) She
will not receive any payout
Answer: B) Her
assured payout will be reduced proportionally
33.
Ajay has completed 15 years of qualifying
service and is retiring under the Unified Pension Scheme. His last 12-month
average basic pay was ₹50,000. His individual corpus and benchmark corpus are
equal. What will be his assured payout before adding Dearness Relief?
A) ₹12,500
per month
B) ₹15,000
per month
C) ₹25,000
per month
D) ₹10,000
per month
Answer:
B) ₹15,000 per month
(Formula:
(Basic Pay ÷ 2) × (Qualifying Service ÷ 300) = (50,000 ÷ 2) × (180 ÷ 300) =
₹15,000)
34.
Ramesh, a government employee, has 10
years of qualifying service and has opted for the Unified Pension Scheme. His
average basic pay before retirement was ₹40,000. However, his individual corpus
is ₹9,00,000 instead of the required ₹10,00,000 benchmark corpus. What will
happen?
A) He
will receive the full ₹10,000 minimum assured payout
B) His
assured payout will be reduced
C) The
government will make up the shortfall
D) He
will not receive any pension
Answer: B) His
assured payout will be reduced
35.
Priya, a retired employee under the
Unified Pension Scheme, passes away after superannuation. What percentage of
her assured payout will be provided to her legally wedded spouse?
A) 100%
B) 80%
C) 60%
D) No
payout is given
Answer: C) 60%
36.
An employee, Suresh, was dismissed from
government service due to disciplinary action after 20 years of service. What
will happen to his pension benefits under the Unified Pension Scheme?
A) He
will receive the assured payout as usual
B) He
will receive a reduced payout
C) He
will not be eligible for assured payout
D) His
spouse will receive 60% of his payout
Answer: C) He will
not be eligible for assured payout
37.
Sunita, a government employee, opted for
the Unified Pension Scheme but did not select any investment option for her
individual corpus. What will happen to her contributions?
A) They
will be refunded to her at retirement
B) They
will be lost
C) They
will be invested based on the ‘default pattern’ of investment
D) They
will be transferred to the pool corpus
Answer: C) They
will be invested based on the ‘default pattern’ of investment
38.
Rahul, a government employee, has completed
12 years of qualifying service. His last drawn basic pay was ₹35,000. His individual
corpus and benchmark corpus are equal. What is the minimum assured payout he
will receive under the Unified Pension Scheme?
A) ₹8,400
per month
B) ₹9,000
per month
C) ₹10,000
per month
D) ₹12,000
per month
Answer:
C) ₹10,000 per month
Explanation:
(35,000/2)x(144/300)x(IC/BC) = 8,400 (since IC=BC)
(Since
the minimum assured payout for 10 years or more of qualifying service is
₹10,000, he will receive at least this amount.)
39.
Arjun, a government employee, made partial
withdrawals from his pension corpus before retirement. His individual corpus at
retirement is now lower than the benchmark corpus. How will this affect his
pension?
A) He
will receive the full assured payout
B) His
assured payout will be reduced
C) The
government will compensate for the difference
D) He
will not receive any pension
Answer: B) His
assured payout will be reduced
40.
A government employee, Preeti, is retiring
under FR 56(j). She has 20 years of service and an average basic pay of
₹55,000. DA rate is 50%. What lump sum amount will she receive, assuming her
qualifying service is counted for lump sum calculation?
A) ₹2,00,000
B) ₹2,75,400
C) ₹3,30,000
D) ₹4,13,100
Answer:
C) ₹3,30,400.
(Formula:
10% of total emoluments × number of completed six-month periods = 1/10(55,000 +
50% of 55,000) × 40 = ₹3,30,400.)
41.
Amit, a central government employee, has
completed 30 years of service and is set to retire next month. His last
12-month average basic pay was ₹60,000. What will be his full assured payout
before adding Dearness Relief?
A) ₹20,000
per month
B) ₹25,000
per month
C) ₹30,000
per month
D) ₹40,000
per month
Answer:
C) ₹30,000 per month
(Formula:
(Basic Pay ÷ 2) × (Qualifying Service ÷ 300) = (60,000 ÷ 2) × (300 ÷ 300) = ₹30,000)
42.
Rohan, a government employee, has 22 years
of qualifying service and is planning to retire. His individual corpus is
₹48,00,000, whereas his benchmark corpus is ₹50,00,000. What are his options?
A) He
must continue working until he reaches 25 years of service
B) He
can either accept a proportionally reduced payout or arrange additional
contributions
C) He
will receive the full assured payout despite the shortfall
D) His
pension benefits will be cancelled
Answer: B) He can
either accept a proportionally reduced payout or arrange additional
contributions
43.
Sneha, a government employee, had 18 years
of service before taking voluntary retirement. Her basic pay was ₹50,000. What
will be her proportionate assured payout before adding Dearness Relief?
A) ₹18,000
per month
B) ₹20,000
per month
C) ₹12,000
per month
D) ₹10,000
per month
Answer:
A) ₹18,000 per month
(Formula:
(Basic Pay ÷ 2) × (Qualifying Service ÷ 300) = (50,000 ÷ 2) × (18x12/300) = ₹18,000)
44.
Deepak has completed only 8 years of
government service and is being dismissed from service. What will happen to his
pension benefits under the Unified Pension Scheme?
A) He
will receive the minimum ₹10,000 assured payout
B) He
will receive a proportionate pension
C) He
will not be eligible for any pension benefits
D) His
spouse will receive 60% of his payout
Answer: C) He will
not be eligible for any pension benefits
45.
Pooja, a retired government employee,
passes away at the age of 65. She was receiving ₹30,000 per month as an assured
payout. How much will her legally wedded spouse receive under the family payout
provision?
A) ₹30,000
per month
B) ₹24,000
per month
C) ₹18,000
per month
D) ₹10,000
per month
Answer: C) ₹18,000
per month (i.e., 60% of ₹30,000 assured payout)
46.
Sanjay, a government employee, made
partial withdrawals from his pension fund and now has ₹35,00,000 in his
individual corpus. However, his benchmark corpus is ₹50,00,000. What will
happen to his assured payout?
A) He
will receive the full assured payout
B) His
payout will be proportionally reduced based on the shortfall
C) The
government will compensate for the difference
D) His
pension will be cancelled
Answer: B) His
payout will be proportionally reduced based on the shortfall
47.
Mehul, a government employee, is set to
retire after completing 25 years of service. His basic pay is ₹55,000, and he
has a Dearness Allowance of 50%. What is the one-time lump sum payment he will
receive?
A) ₹4,12,500
B) ₹4,00,000
C) ₹5,00,000
D) ₹6,00,000
Answer:
A) ₹4,12,500
(Formula:
10% of total emoluments × number of completed six-month periods = (Basic Pay +
DA)/10 × (50 six-month periods) = (55,000 + 27,500) × 5 = ₹4,12,500)
48.
Ravi, a government employee, opts for the
Unified Pension Scheme but does not make an investment choice. What will happen
to his pension contributions?
A) He
will not receive any pension benefits
B) His
contributions will be lost
C) His
contributions will be invested using the 'default pattern' set by PFRDA
D) The
government will manually distribute his funds
Answer: C) His
contributions will be invested using the 'default pattern' set by PFRDA
49.
Kiran, a government employee, completed 30
years of service and had an individual corpus of ₹55,00,000 at retirement.
However, his benchmark corpus was ₹50,00,000. What will happen to the excess
₹5,00,000?
A) It
will be forfeited by the government
B) It
will be credited to his bank account
C) It
will be added to the pool corpus
D) It
will be distributed among other employees
Answer: B) It will
be credited to his bank account
50. A
government employee, Nitin, is retiring under FR 56(j) after completing 20
years of service. His last drawn basic pay was ₹45,000. DA rate is 50%. How much lump sum will he receive?
A) ₹1,37,700
B) ₹2,06,550
C) ₹2,70,000
D) ₹3,44,250
Answer:
C) ₹2,75,400
A) (Formula:
10% of total emoluments × number of completed six-month periods = (45,000 + 22,500)
× 40/10 = ₹2,70,000)