Unified Pension Scheme: The government has announced the Unified Pension Scheme (UPS) for employees. This scheme will come into effect from April 1, 2025. The central government has started a new pension scheme keeping in mind the financial security of government employees after retirement.
Unified Pension Scheme: The government has announced the Unified Pension Scheme (UPS) for employees. This scheme will come into effect from April 1, 2025. The central government has launched a new pension scheme keeping in mind the financial security of government employees after retirement. This scheme has been created by combining some benefits of the Old Pension Scheme (OPS) and the National Pension System (NPS). The purpose of UPS is to maintain the financial stability and respect of employees by giving them a fixed pension after retirement.
Unified Pension Scheme (UPS) will be implemented from 1 April 2025
The Unified Pension Scheme (UPS) will come into effect from April 1, 2025. It will be applicable to those government employees who are already registered under NPS and fulfill the conditions set by the government.
Eligibility for the scheme
The benefit of the Unified Pension Scheme will be available only to those employees who have completed at least 10 years of service.
Important points of eligibility
Superannuation (Retirement): Employees who complete 10 years of service will receive pension from the date of retirement.
Retirement under FR 56(j): Employees who retire under this provision without any penalty will also be entitled to pension from the date of retirement.
Voluntary Retirement (VRS): Employees opting for VRS after 25 years or more of service will receive the pension that would have commenced at their normal retirement age.
They will not get the benefits of UPS
However, UPS benefits will not be available to employees who resign or are removed or dismissed from service.
Pension calculation and benefits
In UPS, pension amount will be decided on the basis of years of service.
Full Pension: Employees with 25 years or more of service will receive 50% of their average basic pay of the last 12 months as pension.
Proportional pension: Employees with less than 25 years of service will get pension as per their service.
Minimum Guarantee: Employees with 10 years of service or more will be given a fixed pension of at least Rs 10,000 per month.
Benefits to the family after death
If the pensioner dies, his widow/widower will get 60% of the pension. This pension will be given from the date of retirement under superannuation, VRS or FR 56(j).
Dearness Relief and other benefits
Dearness Relief (DR) will also be applicable on the pension received by employees and family under UPS. This relief will be given after the pension starts. Apart from this, 10% of the total monthly salary (basic + DA) will be given as a lump sum amount for every 6 months of service at the time of retirement. This amount will not affect the monthly pension.
Effective date and changes
UPS will be fully implemented from 1 April 2025. Employees will get the option to choose between NPS and UPS. Employees who retire earlier will also be given the option to avail this scheme. The government will implement the top-up payment process for them. So that they can join the new pension.
Benefits of the scheme
The Unified Pension Scheme will guarantee a fixed and secure pension to government employees. This step will play an important role in securing the financial future of the employees as well as combining the benefits of both OPS and NPS.
