Last year, Prime Minister Narendra Modi’s government announced a new integrated pension scheme for millions of central employees of the country. PFRDA has issued a notification for this on Thursday. Now it will be implemented in the entire country from the upcoming financial year i.e. 1 April 2025. The purpose of this pension scheme is to provide certain pension security to government employees. The scheme has been prepared for central employees under the National Pension Scheme.
Employees will get pension guarantee
Under this scheme, employees who have completed 25 years of service get a pension guarantee of up to 50 percent on the average of their last 12 months salary. Not only this, if an employee has completed more than 10 years of job, then he will also be given a pension of at least 10 thousand rupees every month. Apart from this, if an employee dies, then 60 percent of the final pension amount will also be given to his family as pension.
What is UPS?
The government launched the National Pension Scheme in the year 2004 by stopping the old pension scheme. Earlier it was only for government employees, but in 2009 it was implemented to all citizens. Under this, the Integrated Pension Scheme has been started. In UPS, a certain amount is deducted from the salaries of the employees and it is invested in the market based investment scheme.
How does UPS work?
At the same time, at the time of retirement, they get 60 percent of the amount outright. Whereas it is necessary to keep 40 percent investment, which they get as pension every month. At the same time, there is no guarantee of any fixed amount as pension under the Old Pension Scheme and National Pension Scheme. The pension given under these schemes is based on the performance of the stock market and other investments.
