The government had launched a new pension scheme for government employees five months ago. Now the Central Government issued a notification on Saturday to implement it. This scheme named Unified Pension Scheme (UPS) will be implemented from April 1, 2025. The Unified Pension Scheme (UPS), launched in August, strikes a balance between the Old Pension Scheme (OPS) and the National Pension Scheme (NPS). This scheme provides guaranteed pension to government employees after retirement, thereby ensuring their financial security.
These will be the conditions for getting pension under UPS option
This scheme will be applicable only to those central government employees who are covered under NPS and choose the UPS option. According to the notification, both existing central government employees and future employees will have the option to choose the UPS option under NPS or continue with NPS without UPS option.
The notification clarifies that employees who opt for the UPS option will not be eligible to claim any other policy concession, policy change, monetary benefit or any parity with employees who retire later. Nor will they be able to claim it.
The scheme has been prepared on the basis of the recommendations of a high-level panel constituted under the chairmanship of Cabinet Secretary TV Somanathan. Under this scheme, it was earlier announced that the employees who are covered under NPS and have already retired will also be included in the ambit of UPS. As per the current notification, the Pension Fund Regulatory and Development Authority (PFRDA) will decide on a process for such retired employees who opt for UPS.
Pension will be calculated in three ways under UPS
Depending on the number of years spent in service, the payment will be calculated in three ways:
1.Full assured payout: This will be for those employees who have 25 or more years of service experience. They will get 50 percent of their average basic pay for the last 12 months as assured pension.
2. Proportional payout: This will be for those employees whose service experience is less than 25 years. Their pension will be decided on the basis of their service experience.
3. Minimum Guaranteed Pension: Employees with at least 10 years of eligible service will receive a minimum assured pension of Rs 10,000 per month.
Apart from pension, you will get these benefits in UPS
The Unified Pension Scheme (UPS) will provide the benefit of ‘Dearness Relief’ to government employees on the basis of inflation, which will work like Dearness Allowance.
If a government employee passes away, his family will get 60 percent of his pension as family pension. Apart from this, you will also get the benefit of lump sum amount (superannuation payment) and gratuity at the time of retirement.