Illustration: Switching from UPS to NPS using One-way One-time Switch Facility under Rule 11 of CCS(I-UPS) Rules, 2025

Assumptions:

Monthly Salary(Basic + DA) = ₹1,00,000

NAV (unit price) starts at ₹10 and increases slowly by ₹0.1 every month.

Also read :Periodic Review of Central Government Employees for strengthening of administration under Fundamental Rule (FR) 56(j)/(1) and rule 48 of CCS(Pension) Rules, 1972

1. Monthly Contributions

UPS: Govt 10% ($10,000) + Employee 10% ($10,000) = ₹20,000

NPS: Govt 14% ($14,000) + Employee 10% ($10,000) = ₹24,000

Difference: Govt contributes ₹4,000 less in UPS.

2. How Contributions Work

Every month, the contribution buys units based on the NAV (just like mutual funds).

Example: In Month 1, NAV = ₹10 → ₹20,000 contribution buys 2,000 units.

Also read :Forms for intimation or permission on repairs or minor constructions work in respect of Immoveable property - DoPT OM dated 17/12/20218

 

3. After 2 Years Months

Extra Govt contribution (if in NPS) = ₹4,000 × 24 = ₹96,000

Because it’s invested, it grows to ₹1,06,312.36.

Return(Interest) = Rs.10,312.36 (=10.74%)

4. Switching from UPS → NPS

When subscriber switch after 24 months:

 

Govt will pay ₹1,06,312.36 in the NPS Tier 1 Account of the Subscriber, i.e., Govt is paying the missing 4% contribution for each month ($4,000/month) and Govt is also paying the investment returns (as per default scheme) on this amount for the period spent in UPS.

• Result: Subscriber’s total corpus = same as if subscriber were in NPS from the start.
• Future Govt Contribution post switch facility becomes effective, will be at 14%.