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7th Pay Commission: The Integrated Pension Scheme for Central employees is going to be implemented in the new financial year. UPS will be available to those central government employees who are already enrolled in NPS and opt for this new scheme.
7th Pay Commission: Now only a few days are left for the start of the new financial year. The Integrated Pension Scheme for Central employees is going to be implemented in the financial year starting from April 1. The central government has launched the Integrated Pension Scheme as an alternative to the National Pension System (NPS). UPS will be available to those central government employees who are already enrolled in NPS and opt for this new scheme. The Finance Ministry has said that central government employees eligible under NPS now have the option to switch to the Integrated Pension Scheme within the NPS structure.
About the scheme
- Retired persons will now get 50% of their average basic salary as pension in the last 12 months before retirement, provided they have served a minimum of 25 years. Apart from this, the government is increasing its contribution from 14% to 18.5%.
- At the same time, the contribution of employees will not increase. In case of unfortunate death of a pensioner, his family will receive 60% of the pension received by the employee. ₹ 10,000 per month will be available as pension on retirement after a minimum of 10 years of service.
- The provisions of UPS will apply to pre-retired employees of NPS (who have already retired). The arrears of the previous period will be paid with interest at PPF rates.
- UPS will be available as an option for employees. Existing NPS/VRS as well as future employees of NPS will have the option to join UPS. The option once chosen will be final.
- UPS is being implemented by the Central Government. About 23 lakh central employees will benefit from this. If state governments also adopt it, it can benefit more than 90 lakh government employees, who are currently on NPS.
