The government has announced the implementation of the new Unified Pension Scheme (UPS) for central employees, and it will be effective across the country from 1 April 2025. The objective of this scheme is to provide fixed pension security to government employees.
The main points of the Unified Pension Scheme (UPS):
Fix Pension Guarantee:
Employees who have completed 25 years of service will get a pension of up to 50% on the average of their last 12 months salary.
Employees with more than 10 years of service will be given pension at least ₹ 10,000 per month.
On the death of the employee, his family will get 60% of the last pension amount as pension.
How will UPS work?
A fixed amount will be deducted from the salaries of the employees and it will be invested in the market-based investment scheme.
At the time of retirement, 60% amount will be given to employees outright, while 40% amount will remain in investment and it will get pension every month.
How to separate from Old Pension Scheme (OPS) and National Pension Scheme (NPS)?
OPS and NPS did not guarantee a fixed pension amount.
The NPS was completely dependent on the performance of the stock market and other investment, while the UPS would have a certain minimum pension guarantee.
This new pension scheme will benefit from getting fixed and safe pension to millions of government employees, so that financial stability will remain after retirement.