FAQs related to Investment of Contributions under UPS and options of investment choices for individual corpus

FAQs related to Investment of Contributions under UPS and options of investment choices for individual corpus

(CGA, DoE, MoF O.M. No. TA-3-07001/3/2025-TA-CGA/e-19475/341 dated 17.09.2025)

FAQs related to Investment of Contributions

30. Can an employee select the pension fund and investment pattern under UPS?

Yes, employees can choose from registered pension funds and investment patterns, including default patterns defined by PFRDA.

31. What happens if an employee does not choose a pension fund?

In such cases, the employee will be assigned the default pension fund and investment pattern defined by PFRDA.

32. What are the options of investment choices for individual corpus other that default pattern?

i. Option to invest hundred percent of the funds in Government securities (Scheme G); or

ii. Option of any one of the following Life Cycle based schemes:

(a) Conservative Life Cycle Fund with maximum exposure to equity capped at twenty- five percent. LC-25; or
(b) Moderate Life Cycle Fund with maximum exposure to equity capped at fifty percent. LC-50.

33. How many times the choice of pension fund and investment choice can be exercised in a financial year?

UPS Subscriber shall have an option to change

• • the choice of pension fund once in a financial year and
  • investment choice twice in a financial year.

34. How Benchmark Corpus is calculated?

Benchmark corpus shall be computed in the following manner:

(i) Partial withdrawals made out of individual corpus and voluntary contributions made into the individual corpus shall not be considered in the computation.

(ii) For contributions received prior to 1st April, 2025: monthly contributions shall be considered as and when they have been received and be valued on default pattern.

(iii) For contributions received on or after 1st April, 2025:

(a) monthly contributions which are to be received in that month, shall be considered as and when received during the month and valued on default pattern.

(b) In the event of any missing contribution in any month, value shall be based on the weighted average NAV of default pattern as on the last working day of the month applied to monthly contributions of previous full month.

(iv) Contributions arising from arrears, such as arrears of Dearness Allowance shall be considered and valued on the default pattern as and when they are received.

35. Will the subscriber be informed of corpus value updates?

Yes, CRA will provide details of the individual corpus and benchmark corpus in the PRAN account statement periodically.

Other FAQs

• Frequently Asked Questions (FAQs) – Unified Pension Scheme (UPS)
• FAQs related to Contributions under UPS
• FAQs related to Benefits under UPS
• FAQs related to Benefits under UPS in case of death or invalidation or disability of subscriber during service / Resignation from the service
• FAQs on Effect of Disciplinary or Judicial Proceedings on Benefits under UPS
• FAQs related to operational issues on Payment of Benefits under UPS