Unified pension scheme notified: Prior to the general budget, the Central Government has decided to start Unified Pension Scheme i.e. UPS as an option under the National Pension System (NPS) for its employees. This unified pension scheme has been notified on Saturday 25 January for central government employees covered under the National Pension System. This new pension scheme in the country will be applicable from 1 April 2025. The unified pension scheme aims to provide assured payouts, structured retirement benefits and additional flexibility for employees.
The Unified Pension Scheme will apply to the employees of the central government who come under the National Pension System (NPS) and who choose this option under the National Pension System (NPS). Here is a brief description of the main features and effects of this unified pension scheme.
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Who is eligible for Unified Pension Scheme?
This scheme applies to the central government employees who are under NPS and opt for UPS. However, the assured payment under this scheme will be available only under certain special circumstances, which are as follows.
If an employee takes retirement after serving 10 years or more, then
From the date of such retirement by the government in the case of retirement without punishment under FR 56 (J) Rule
After completing 25 years of service, in the case of VRS, if the service period continues till retirement, then from the date when such an employee retire
It is worth noting that the assured payout will not apply in case of removal or dismissal from service or resignation of the employee. In such cases, the option of unified pension scheme will not be applicable.
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Main benefits of Integrated Pension Scheme (UPS)
Unified Pension Scheme (UPS) gives structured retirement benefits for employees who choose to join the scheme.
Employees serving 25 years or more will get 50 percent of their last 12 months average basic pay as assured payout.
Those who serve less than 25 years will be given pension according to the ratio.
Apart from this, employees whose service is 10 years or more will get a minimum of Rs 10,000 every month.
If in the event of death after retirement of pensioners, his legally married husband or wife will get 60 percent of the assured payout as family benefits.
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Dearness Relief (DR)
Inflation relief i.e. Dearness Relief Assured Peout and Family Pension, as it is, will be available. DR will be calculated like dearness allowance applied to serving employees. According to the notification issued, DR will be payable only when the payment starts.
Lum Sama Benefit
On retirement, employees will get a lump sum payment equal to 10 percent of their basic pay and one -time dearness allowance (DA), which will be for every six months of service.
All these benefits are to be met by the employees and their families after retiring in the purpose of financial security and support.
