Unified Pension Scheme: Preparations are underway to implement the Unified Pension Scheme (UPS) across the country from April 1, 2025.
Unified Pension Scheme: Preparations are underway to implement the Unified Pension Scheme (UPS) across the country from April 1, 2025. The Union Cabinet approved the UPS scheme on August 24, 2024. Later, the Finance Ministry announced the scheme on January 25 this year.
Experts believe that UPS may be a good option for employees who want a stable income after retirement. In this case, what are the special features of the new scheme called Unified Pension Scheme? How much will the pension be? Who will get the benefits in what way? In this article, you can get answers to many questions like…
Who is eligible for the Integrated Pension Scheme?
According to a gazette notification issued by the Finance Ministry, the UPS scheme will be applicable to central government employees covered under the National Pension Scheme ( NPS ). With effect from April 1, 2025, 23 lakh government employees will have the option to opt for either UPS or NPS. Central government employees who are currently covered under the NPS scheme and prospective central government employees can opt for the UPS scheme or, if they are not interested in the UPS scheme, they can continue with the NPS scheme.
How much pension will be paid?
Under the Integrated Pension Scheme, an employee can get a pension of 50% of the average basic pay earned in the 12 months preceding retirement. But for this, the employee needs to have served for at least 25 years. If the employee is dismissed or dismissed or resigns, the guaranteed pension will not be available. If the employee’s minimum service is less than 25 years, the pension will be available on a pro rata basis. If the employee’s service is 10 years or more, the guaranteed pension of Rs. 10,000 will be provided every month as a minimum pension.
How to join the new pension scheme
If an employee under the NPS scheme, while in service on the date of implementation of the UPS scheme, opts for the UPS option, the funds in the employee’s Permanent Pension Account Number will be transferred to the employee’s personal fund under the UPS scheme.
Government contribution to pensions to increase
Currently, the government’s contribution to the pension of central government employees is 14%. UBS will increase this government contribution to 18.5%. At the same time, employees will have to deposit 10% of their basic salary and dearness allowance in the UBS scheme.
In case of voluntary retirement and death…
If a Government servant takes voluntary retirement after completing the minimum qualifying period of 25 years, the assured pension under the UPS scheme will start from the date of retirement of the servant. But only if the servant has continued to work continuously in the service of the servants. In case of death of the beneficiary after retirement, family pension at the rate of 60% of the allowance admissible immediately before his death will be paid to the wife of the legally married servant.
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