OPS vs NPS vs UPS : Decoding the Key Features

Feature	Old Pension Scheme (OPS)	National Pension System (NPS)	Unified Pension Scheme (UPS)
Type	Defined Benefit Scheme Guaranteed pension)	Market-linked Investment Scheme	Hybrid Pension Scheme (Guaranteed pension with contribution model)
Applicable To	Central government employees appointed before 22 Dec 2003	Government and private-sector employees, NRIs, self-employed individuals	Central government employees (may extend to state employees)
Employee Contribution	None	10% of basic salary + DA	10% of basic salary + DA
Government Contribution	Fully funded by the government	14% of basic salary + DA	18.5% of basic salary + DA
Pension Calculation	Based on the last drawn basic salary	Depends on investment performance and annuity plan	50% of average basic pay over the last 12 months (for employees with 25+ years of service)
Lump Sum Payout at Retirement	No	60% of corpus (tax-free), 40% annuitised	No
Family Pension	Yes, full pension benefits for the spouse	Depends on the annuity plan chosen	60% of the last pension drawn given to family
Inflation Protection (DA Revisions)	Twice a year	No guaranteed DA revision	Yes, inflation-linked adjustments
Tax Benefits	No tax benefits	Tax deductions under Sections 80C, 80CCD (1B), and 80CCD (2)	Taxation details are yet to be clarified
Risk Factor	No risk, fixed pension	Market-dependent returns, no guaranteed pension	No market risk, assured pension
Gratuity Benefits	Yes	Yes	Yes
Flexibility in Investment	Not applicable	Choice of fund managers and investment options	Not applicable
Sustainability	High burden on the government, increasing pension liabilities	Sustainable, self-funded through investments	Balanced approach with government support