Based on the March 2025 Gazette notification on the Unified Pension Scheme (UPS), here's a comparative report highlighting:

1. Key insights not clearly visible in the notification but crucial

2. Provisions that may be reconsidered or removed for employee benefit

3. Policy suggestions to enhance the UPS

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I. Key Insights (Beyond What the UPS Notification States)

Feature	OPS	NPS	UPS (as per Notification)	Observation
Nature of Pension	Defined Benefit (50% of last pay + DA)	Market-linked	Hybrid: Assured Payout + Benchmark Corpus-based	UPS tries balance but can result in lower benefits if corpus is less
Minimum Pension Guarantee	Yes	No	Rs. 10,000/month after 10 years	Not inflation-indexed; could be inadequate in future
Government Contribution	Full liability	14% (CG) + 10% (Employee)	Equal match: 10% by Govt. & Employee + 8.5% in pool	Reduced employer responsibility vs OPS
Risk on Market Volatility	No	Yes	Yes (for shortfall below benchmark corpus)	Shortfall recovery burden on subscriber
Family Pension	Yes, lifelong to spouse	Annuity-based, limited	60% of admissible payout (if conditions met)	Not at par with OPS; no children/special needs provision
Partial Withdrawal	Not applicable	Limited	Allowed 3 times, for specific purposes only	Still restrictive in genuine emergencies
DA Benefit	Yes, regular	No	Yes, but only on admissible payout	Starts only post-payout phase, no interim protection

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II. Provisions in the UPS Notification that May Be Removed or Reconsidered

1. Clause: Replenishment of Shortfall in Corpus

   • Concern: If individual corpus is lower than benchmark corpus, payout is reduced unless replenished by subscriber.

   • Suggestion: Remove burden from subscriber. Government should fund the gap from the pool corpus.

2. Clause: Final Withdrawal Cap at 60%

   • Concern: This limits flexibility even if corpus is sufficient.

   • Suggestion: Allow up to 100% withdrawal if benchmark corpus is met or exceeded.

3. Clause: Option Irrevocability

   • Concern: Once opted for UPS, employees cannot revert. No flexibility if terms prove disadvantageous.

   • Suggestion: Allow re-option within a cooling-off period (say 1 year) or after 5 years.

4. Clause: Monthly Payout Based on “Average of Last 12 Months”

   • Concern: If employee’s pay is reduced due to leave/medical/suspension in last year, pension is adversely affected.

   • Suggestion: Take higher of 12-month average or last basic pay drawn.

5. Clause: Family Pension Only to Spouse

   • Concern: Excludes dependent children, disabled dependents, parents.

   • Suggestion: Extend family payout provisions to dependent children or nominated dependents.

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III. Suggestions to Improve UPS for Employee Welfare

1. Link Minimum Guaranteed Pension with DA or CPI

   • A static Rs. 10,000/month could become negligible in future. Make it inflation-indexed.

2. Hybrid Model with Tiered Security

   • Tier I: Minimum Government-guaranteed pension (e.g., Rs. 15,000)

   • Tier II: Market-based optional corpus to top-up pension

3. Separate Medical Coverage or Integration with CGHS for Retirees

   • OPS retirees get CGHS benefits. Include similar guaranteed post-retirement health security under UPS.

4. Allow Pension Commutation

   • Introduce optional commutation of pension (as in OPS) for urgent needs at retirement.

5. Clarify Pool Corpus Utilization

   • Transparency and audit on pool corpus usage should be mandatory, ensuring it's used for employee support, not admin costs.

6. Simplify Application and Withdrawal Process

   • Especially for family members/spouses after demise of UPS subscribers.