Unified Pension Scheme: There has been great news for government jobs. The Finance Ministry has announced a new pension scheme, “Unified Pension Scheme” (UPS). The scheme is for the central employees who have launched jobs on or after 1 January 2004. The UPS will be implemented from 1 April 2025.
How will Unified Pension Scheme work?
Unified pension scheme has been designed by the government to secure the future of employees. In this, employees will contribute 10% of their original salary and dearness allowance, while the government will contribute more than this, ie 18.5%. In addition, the government will contribute an additional 8.5% for a separate pooled corpus.
After retirement in this scheme, employees will get 50% of their last 12 months average salary as pension. The scheme is an attempt to return the tradition of old -time guaranteed pension.
What are the special things of UPS?
Can you leave NPS and enter UPS?
Employees who are already in NPS can shift to this new scheme. However, keep in mind that once shifted to UPS you cannot go back to NPS.
How will change?
When will this scheme be implemented?
The Unified Pension Scheme will be applicable from 1 April 2025. The Pension Fund Regulatory and Development Authority (PFRDA) will issue the required rules for this. The scheme not only gives the assurance of guaranteed pension to the employees, but also promises to protect their future from inflation.