The Department of Pension and Pensioners’ Welfare (DoP&PW) has clarified how contributions by employees and the government to the Unified Pension Scheme (UPS) will be calculated during the period of suspension of a central government employee.
In an office memorandum, the department outlined the provisions governing subscriber and government contributions during suspension under the Central Civil Services (Implementation of Unified Pension Scheme under the National Pension System) Rules, 2025.
Under Rule 6(2) of the rules, a UPS subscriber can choose whether to make contributions during the period of suspension.
If the government subsequently treats the suspension period as duty or as leave for which leave salary is payable, following the conclusion of an inquiry, the subscriber’s contribution will be recalculated based on the emoluments to which the employee becomes entitled for that period.
Any difference between the contribution payable on the revised emoluments and the amount already deposited will be credited to the subscriber’s individual corpus. The adjustment will be valued using the net asset value (NAV) of the default investment pattern and the corresponding units on the last working day of the month in which the adjustment is made.
The memorandum also clarifies the government’s contribution during the suspension period under Rule 7(3).
The government’s contribution will be calculated based on the emoluments determined after taking into account the subsistence allowance paid to the employee during suspension.
However, the government will not make contributions during the suspension period if the subscriber has opted not to contribute during that period.
If the suspension period is subsequently treated as duty or leave for which leave salary is payable, the government’s contribution will be recalculated based on the emoluments to which the employee becomes entitled. Any difference between the revised government contribution and the amount already deposited will be credited to the employee’s individual corpus.
This adjustment will also be valued using the NAV of the default investment pattern and the corresponding units on the last working day of the month in which the contribution is adjusted.
The DoP&PW has asked all ministries and departments to bring these provisions to the attention of officials handling UPS and National Pension System (NPS) matters for their implementation.
Unified Pension Scheme (UPS): FAQs on pension contributions during suspension
Is a UPS subscriber required to contribute during the period of suspension?
No. Under Rule 6(2) of the UPS Rules, 2025, the subscriber can choose whether to make contributions during the suspension period.
What happens to UPS contributions if the suspension period is later treated as duty?
The employee’s and government’s contributions are recalculated based on the emoluments applicable to the period, as determined in the final government orders. Any difference between the revised contribution and the amount already deposited is adjusted in the subscriber’s individual corpus.