UPS vs NPS vs OPS: Last-drawn average basic pay Rs 85,000; pensionable service 25 years; where will you get highest pension?

The central government launched NPS for its employees on January 1, 2004. Employees who joined a central government job from that date are eligible to get their pension under this scheme. It replaced OPS in all central government jobs. 

However, anyone who joined before that gets theirs or will get it as per OPS. The NPS pension depends on an individual and the government's contribution to the employee's NPS account during service years. 

OPS has been in existence for more than a century. It transformed into its newest form post Independence. In 1998, a big change came in the form of the age for the retirement of an employee, which was increased from 58 years to 60 years. In OPS, an employee doesn't have to make any contribution to get a pension.

The central government announced this scheme in October last year and notified in January this year. The pension system is for central government employees, who are assured of a minimum pension on completion of at least 10 years of service. 

An employee is eligible for a pension on completion of 10 years of service. The pension is calculated with reference to emoluments (i.e., last basic pay) or average emoluments (i.e., average of the basic pay drawn during the last 10 months of the service) whichever is more beneficial. 

Pension is 50 per cent of the emoluments or average emoluments, whichever is beneficial. Family pension is 60 per cent of the deceased pension.

It is contribution-based. In case of a central government employee, the minimum contribution from an employee's side is 10 per cent, while from the government side, the maximum is 14 per cent of the basic salary of the employee. The amount is invested in market-linked and non-linked programmes. 

An employee with a Tier I account can withdraw up to 60 per cent of their retirement corpus at 60 years of age. From the remaining amount, they can purchase an annuity plan to get a regular pension.

A minimum Rs 10,000 pension is given to an employee on completion of 10 years of service. The maximum pension can be 50 per cent of the average 12-month basic pay and dearness allowance of an employee on completion of 25 years of service. The family pension will be 60 per cent of the deceased's pension. 

A central government employee needs to contribute a minimum of 10 per cent of their basic pay, while the government's contribution will be 18.5 per cent of the basic pay and DA of the employee. The amount will be invested in market-linked investment tools, and some will be earmarked for the assured pension pool.

Rs 65,025

Rs 39,015

Rs 65,025 However, along with that, the pensioner will get a one-time (lump sum) amount of Rs 7,02,270

Rs 39,015

It has nothing to do with the average basic salary. It will depend on the contribution of an individual.