Unified Pension Scheme (UPS) Quiz: Test Your Knowledge with 15 MCQs
Are you familiar with the Unified Pension Scheme (UPS)? Take our 15-question quiz to test your knowledge about this comprehensive pension plan, including eligibility criteria, benefits, and contribution details.
Unified Pension Scheme (UPS) Quiz
📜 Overview
The Union Cabinet approved the Unified Pension Scheme (UPS), effective from April 1, 2025, to replace the current National Pension System (NPS) for central government employees. This scheme offers assured pensions and various other benefits, with provisions for state governments to adopt it as well.
1️⃣ When will the Unified Pension Scheme (UPS) come into effect?
- A) April 1, 2023
- B) April 1, 2024
- C) April 1, 2025
- D) April 1, 2026
- 🟢 Answer: C) April 1, 2025
2️⃣ What percentage of the employee’s average basic pay will be provided as an assured pension under UPS for a minimum qualifying service of 25 years?
- A) 40%
- B) 50%
- C) 60%
- D) 70%
- 🟢 Answer: B) 50%
3️⃣ What is the minimum service period required to qualify for the assured minimum pension under UPS?
- A) 5 years
- B) 10 years
- C) 15 years
- D) 20 years
- 🟢 Answer: B) 10 years
4️⃣ How much is the assured minimum pension per month under the UPS?
- A) ₹5,000
- B) ₹7,500
- C) ₹9,000
- D) ₹10,000
- 🟢 Answer: D) ₹10,000
5️⃣ What percentage of the last drawn pension will the retiree’s immediate family receive as a family pension under UPS?
- A) 50%
- B) 55%
- C) 60%
- D) 65%
- 🟢 Answer: C) 60%
6️⃣ How is the indexation for dearness relief calculated under UPS?
- A) Based on Wholesale Price Index
- B) Based on All India Consumer Price Index for Industrial Workers
- C) Based on GDP growth rate
- D) Based on market inflation rate
- 🟢 Answer: B) Based on All India Consumer Price Index for Industrial Workers
7️⃣ What is the lump sum payment at retirement under UPS for every six months of service?
- A) 1/8th of monthly emoluments
- B) 1/9th of monthly emoluments
- C) 1/10th of monthly emoluments
- D) 1/12th of monthly emoluments
- 🟢 Answer: C) 1/10th of monthly emoluments
8️⃣ Can employees choose to remain under the National Pension System (NPS) instead of shifting to UPS?
- A) Yes, but only once
- B) Yes, but it’s mandatory to switch after 5 years
- C) No, they must switch to UPS
- D) No, NPS is being phased out entirely
- 🟢 Answer: A) Yes, but only once
9️⃣ How does the pension calculation method differ between UPS and the Old Pension Scheme (OPS)?
- A) UPS offers a higher pension percentage than OPS
- B) UPS calculates pension based on average salary of the last 12 months, whereas OPS used the last drawn salary
- C) UPS includes a market-based adjustment, OPS did not
- D) UPS requires no employee contribution, OPS did
- 🟢 Answer: B) UPS calculates pension based on average salary of the last 12 months, whereas OPS used the last drawn salary
🔟 What is the employee contribution rate under UPS?
- A) 8% of basic pay
- B) 10% of basic pay
- C) 12% of basic pay
- D) 14% of basic pay
- 🟢 Answer: B) 10% of basic pay
1️⃣1️⃣ What is the government’s contribution rate under UPS?
- A) 14%
- B) 16.5%
- C) 18.5%
- D) 20%
- 🟢 Answer: C) 18.5%
1️⃣2️⃣ What tax benefit does NPS provide that might not be available under UPS?
- A) Deduction of 20% under Income Tax Act, 1961
- B) Deduction of 14% under Income Tax Act, 1961
- C) Tax-free pension income
- D) No tax benefits were provided under NPS
- 🟢 Answer: B) Deduction of 14% under Income Tax Act, 1961
1️⃣3️⃣ What is the minimum pension offered per month under UPS after 10 years of service?
- A) ₹5,000
- B) ₹7,500
- C) ₹9,000
- D) ₹10,000
- 🟢 Answer: D) ₹10,000
1️⃣4️⃣ Which scheme allowed commutation of up to 40% of the pension into a lump sum payment?
- A) Unified Pension Scheme (UPS)
- B) Old Pension Scheme (OPS)
- C) National Pension System (NPS)
- D) None of the above
- 🟢 Answer: B) Old Pension Scheme (OPS)
1️⃣5️⃣ Which committee's recommendations led to the introduction of the UPS?
- A) T V Somanathan Committee
- B) Raghuram Rajan Committee
- C) N K Singh Committee
- D) Y V Reddy Committee
- 🟢 Answer: A) T V Somanathan Committee
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