For a long time the central employees were demanding a guaranteed pension scheme, and now the government has taken a big decision on it. The employees involved in the National Pension Scheme (NPS) have now been given the option to switch to the Unified Pension Scheme (UPS). This new scheme promises guaranteed pension, which will ensure a certain income after retirement to employees.
In this article, we will tell you what is the UPS scheme, how can it be switched in it, and what are the major things related to it.
What is UPS (Unified Pension Scheme)?
UPS i.e. Unified Pension Scheme is a new pension scheme introduced by the Central Government, which is aimed at giving guaranteed pension to employees. This scheme is mainly brought as an alternative to NPS. While the pension amount in NPS is market based and there is no definite guarantee in it, there is a provision to get a fixed pension of at least ₹ 10,000 every month in UPS.
Who can switch to UPS?
The option to switch to UPS is given to central employees who are currently under NPS.
Employees who have completed at least 10 years of service can avail this scheme.
Employees serving 25 years or more can claim pension 12 months before retirement under UPS.
How to switch from NPS to UPS?
The government has launched an online portal to make this switch easier:
First visit:
www.npscra.nsdl.co.in/ups.php
Two options will appear on the page:
You have to choose the “Migrate to UPS” option.
After this you have to fill all the information sought, such as Pran number, date of birth, service period etc.
After filling all the details and submitting, your switch process will be completed.
Important terms and precautions
Once switching to UPS, NPS cannot return again. That is, this decision will be final for once.
After joining the UPS, both the employee and the government will continue to contribute 10-10% of the basic salary + DA, just like the NPS.
The average basic salary will be made the basis for fixing the pension amount.
Mathematics of Pension: Guarantee of ₹ 10,000 every month
The UPS scheme has promised that employees who have served for at least 10 years will be given a minimum pension of ₹ 10,000 every month.
This amount can also increase according to service duration and basic salary. For example, if an employee has an average salary of ₹ 60,000, he can also get a monthly pension of up to ₹ 30,000 after retirement.
This pension will start from the date of retirement and give it throughout his life.
Why is UPS special?
Feature NPS UPS pension guarantee ✅ No ✅ yes Pension amount permission to return minimum ₹ 10,000 yes ❌ No Employee and Government – 10% The same Income after retirement
conclusion:
Unified Pension Scheme (UPS) is a historic step by the central government, which will fulfill the demand for long -standing guaranteed pension of central employees. The scheme has brought relief for employees who want financial security after retirement.
However, it is necessary to understand all the conditions and terms carefully before switching to the UPS because returning is not possible after making a decision. If you are a central employee and planning retirement, this opportunity can be very important for you.
