Retirement plan is a very important financial decision. Proper planning can reduce many future difficulties. All people plan pension during their jobs. Even if they are government employees. Currently, new government employees in India get pension under NPS i.e. National Pension Scheme, hence central employees admitted before 22 December 2003 get pension under OPS i.e. Old Pension Scheme. After 1 April 2025, employees in the country can also take pension under Unified Pension Scheme i.e. UPS. Let us tell you. What is the difference between the three pension schemes and which scheme provides the most benefits?
The Integrated Pension Scheme will be applicable from 1 April 2025 this year. Central employees will be given a fixed pension under UPS. Which will be 50% of their average basic salary of the last 12 months. To get this pension, employees will have to serve for at least 25 years. If the employees die. So his family will get 60% of the employee’s pension. Apart from this, people who work for 10 years. They will also get a pension of at least Rs 10,000. In this, the pension of retired employees will continue to increase according to inflation. The government will contribute 18.4 percent under this pension scheme. Whereas employees will have to contribute 10% of the original salary and DA. Pension will be given under UPS on the basis of this contribution.
Talking about NPS scheme, anyone from private to government employees can take advantage of this. NPS is reduced by 10 percent of salary. NPS is a stock market -related scheme. On contributing in this, up to 60% amount is given lump sum at the time of retirement and the remaining 40% amount is given as annuity. Talking about OPS, OPS has a guaranteed pension based on the last basic salary of the central employee and years of service. Employees who have been working for at least 10 years, they are O.P.S. They are eligible to take. In this, dearness allowance is increased twice a year. Employees do not have to contribute to it. Nor is any deduction from their salary during service. It also provides GPF facility. However, let us tell you that only employees admitted before December 22, 2003 can take advantage of it.
If a government employee is eligible to take pension under the old pension scheme ie OPS. So the best OPS is for him. Because its benefits are more. Apart from government employees, private employees can also apply for NPS. There is no guarantee of pension in this but returns are received on the basis of investment. If we talk about UPS, then it is also contributed by the government. That is, UPS is the second best pension scheme after OPS. Employees can choose any pension scheme by calculating their requirements.
