7th Pay Commission: Let us tell you that the Pension Fund Regulatory and Development Authority (PFRDA) will operate UPS along with NPS and will issue guidelines for it from time to time.
7th Pay Commission: From the first day of the new financial year i.e. April 1, a scheme is being implemented, which is going to have a direct impact on central employees. Its name is Unified Pension Scheme (UPS). This scheme has been introduced as an option for central employees. This scheme, launched last year, will come into effect from April 1, 2025. After its implementation, government employees will be able to choose either National Pension Scheme (NPS) or Unified Pension Scheme (UPS).
Specialty of the scheme
Unified Pension Scheme has a provision for giving assured pension to government employees. Employees who have worked for at least 25 years will get a fixed pension of half i.e. 50 percent of their average basic salary in the 12 months before retirement. In case of employees who have worked for less than 25 years, the pension amount will be determined in proportion to their tenure and the minimum service period for the scheme has been fixed at 10 years. There is a provision to give Rs 10,000 per month on retirement after a minimum service of 10 years. If the employee dies, his or her spouse will be given a family pension. This pension will be 60 percent of the employee’s pension just before his or her death.
Who can join?
Only those employees who have joined government service after January 1, 2004 and who have opted for the National Pension Scheme (NPS) will get a chance to join UPS. Both existing central government employees and future employees will have the option to opt for UPS under NPS. Or continue with NPS without UPS option. Once the option is chosen, it cannot be changed.
Employee will have to contribute
At least 10 years of service is necessary to get pension through UPS. On the lines of NPS, employees will have to contribute 10 percent of their basic salary here as well. The government will contribute 18.5 percent. That means the total contribution of the employee and the government in this scheme will be 28.5 percent.
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