MCQ on Unified Pension Scheme (UPS)

Creating important multiple-choice questions (MCQs) on the Unified Pension Scheme (UPS) requires focusing on its key features and benefits. Questions should cover the eligibility criteria, such as the minimum qualifying service of 25 years for full pension and 10 years for a minimum pension. Other crucial aspects include the calculation of assured pension, family pension percentages, inflation indexation, dearness relief based on AICPI-IW, and the lump sum payment at superannuation. MCQs should also test understanding of how these provisions provide financial security to retirees and their families. By addressing these elements, the MCQs will help in evaluating a comprehensive understanding of the UPS, ensuring learners grasp the scheme's structure and its impact on pensioners. These MCQs important for up-coming exams like UPSC, UPPSC, BPSC, and others.

Unified Pension Scheme

Q1. Which of the following is the minimum qualifying service required to receive the full assured pension under the Unified Pension Scheme (UPS)?

(a) 10 years

(b) 15 years

(c) 20 years

(d) 25 years

Answer: (d) 25 years

Explanation: The UPS provides an assured pension of 50% of the average basic pay drawn over the last 12 months, provided the employee has a minimum qualifying service of 25 years. For service periods less than 25 years but more than 10 years, the pension is proportionately reduced.

 

Q2. Under the Unified Pension Scheme (UPS), what percentage of the pension does the family receive as an assured family pension after the demise of the employee?

(a) 50%

(b) 60%

(c) 70%

(d) 80%

Answer: (b) 60%

Explanation: The UPS ensures an assured family pension, which is 60% of the pension amount that the employee was receiving immediately before their demise.

 

Q3. What is the assured minimum pension per month under the Unified Pension Scheme (UPS) for employees who have completed a minimum of 10 years of service?

(a) ₹5,000

(b) ₹7,500

(c) ₹10,000

(d) ₹15,000

Answer: (c) ₹10,000

Explanation: The UPS guarantees a minimum pension of ₹10,000 per month on superannuation, provided the employee has completed at least 10 years of service.

 

Q4. The Dearness Relief under the Unified Pension Scheme (UPS) is based on which of the following indices?

(a) Consumer Price Index for Agricultural Labourers (CPI-AL)

(b) Wholesale Price Index (WPI)

(c) All India Consumer Price Index for Industrial Workers (AICPI-IW)

(d) Consumer Price Index for Rural Labourers (CPI-RL)

Answer: (c) All India Consumer Price Index for Industrial Workers (AICPI-IW)

Explanation: The Dearness Relief under the UPS is calculated based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), similar to the mechanism used for service employees.

 

Q5. Under the Unified Pension Scheme (UPS), the lump sum payment at superannuation is calculated based on which of the following criteria?

(a) 1/10th of monthly emoluments for every completed six months of service

(b) 1/20th of monthly emoluments for every completed six months of service

(c) 1/15th of monthly emoluments for every completed year of service

(d) 1/12th of monthly emoluments for every completed year of service

Answer: (a) 1/10th of monthly emoluments for every completed six months of service

Explanation: The lump sum payment at superannuation under the UPS is 1/10th of the monthly emoluments (pay + DA) for every completed six months of service, and this payment does not reduce the quantum of the assured pension.

 

Q6. What is the purpose of inflation indexation in the Unified Pension Scheme (UPS)?

(a) To increase the pension amount annually by a fixed percentage

(b) To adjust the pension, family pension, and minimum pension according to inflation

(c) To cap the maximum pension amount

(d) To standardize the pension amount across all employees

Answer: (b) To adjust the pension, family pension, and minimum pension according to inflation

Explanation: Inflation indexation under the UPS ensures that the assured pension, assured family pension, and assured minimum pension are adjusted in line with inflation, helping to maintain the purchasing power of retirees.

 

Q7. Which of the following best describes the relationship between the lump sum payment at superannuation and the assured pension under the Unified Pension Scheme (UPS)?

(a) Lump sum payment reduces the assured pension amount

(b) Lump sum payment has no impact on the assured pension amount

(c) Lump sum payment increases the assured pension amount

(d) Lump sum payment is deducted from the assured pension

Answer: (b) Lump sum payment has no impact on the assured pension amount

Explanation: The lump sum payment made at superannuation under the UPS does not reduce or affect the quantum of the assured pension.

 

Q8. How is the assured pension amount calculated under the Unified Pension Scheme (UPS)?

(a) 50% of the highest basic pay drawn in the last 5 years

(b) 50% of the average basic pay drawn over the last 12 months

(c) 60% of the last drawn basic pay

(d) 50% of the last drawn basic pay

Answer: (b) 50% of the average basic pay drawn over the last 12 months

Explanation: The assured pension under the UPS is calculated as 50% of the average basic pay drawn over the last 12 months prior to superannuation.

 

Q9. Which of the following conditions must be met to qualify for the minimum pension under the Unified Pension Scheme (UPS)?

(a) Minimum 15 years of service

(b) Minimum 10 years of service

(c) Minimum 20 years of service

(d) No minimum service required

Answer: (b) Minimum 10 years of service

Explanation: To qualify for the assured minimum pension under the UPS, an employee must have completed at least 10 years of service.

 

Q10. Which of the following is not a feature of the Unified Pension Scheme (UPS)?

(a) Assured pension based on last drawn basic pay

(b) Assured family pension at 60% of the employee's pension

(c) Inflation indexation for pension and family pension

(d) Lump sum payment at superannuation in addition to gratuity

Answer: (a) Assured pension based on last drawn basic pay

Explanation: The assured pension under the UPS is based on 50% of the average basic pay drawn over the last 12 months prior to superannuation, not the last drawn basic pay.

 

Q11. When will be implemented the UPS pension scheme?

(a)    February 1, 2025

(b)   March 1, 2025

(c)    April 1, 2025

(d)   May 1, 2025

Answer: April 1, 2025

Explanation: UPS will be effective from April 1, 2025.