Unified Pension Scheme Calculator: Unified Pension Scheme (UPS) for government employees is going to be implemented from 1 April 2025. This scheme will be applicable as an alternative option for employees coming under the National Pension System (NPS). The UPS scheme provides for a lump sum amount at the time of minimum pension, family pension, inflation index at the time of retirement and retirement. To know how much government employees will benefit from UPS, it is necessary to understand the rules of the scheme, calculation of pension and the use of UPS calculator.
What is Unified Pension Scheme?
Unified pension scheme was approved by the Central Government in August 2024 itself. In this scheme, employees are guaranteed minimum pension after retirement. This scheme is especially for those central government employees who come under NPS and choose this option. The main advantages found under the UPS scheme are:
-
Minimum pension guarantee
-
Family pension
-
Pension increases according to inflation
-
London amount paid at the time of retirement
-
Provision of gratuity
This scheme will also apply to employees who retire after completing 10 years of jobs, take voluntary jobs (VRS), or whose retirement rules are under 56 (J). Fundamental Rule (FR) 56 (J) is a provision of the Central Civil Services (CCS) Pension Rules, 1972, which allows the government to retire prematurely to the government employees.
Also Read: Sebi New Chief Selection: Selection Process of new SEBI chief starts, government sought applications, Madhabi Puri’s tenure ending on February 28
How does UPS calculator work?
By using the calculator of the unified pension scheme, it can be ascertained how much pension and lump sum will be given to an employee at the time of retirement. The government has also released an example of its calculation.
Also Read: Best Return Mutual Funds: Top 5 Multi Asset Allocation Fund, that is, the strength of strength between the upheaval, yet the return is not less!
Calculation formula and method
According to the government, 1/10 of the total salary is extracted by the basic pay and dearness allowance (DA) of the retirement time and is multiplied by the number of half (L) included in the job duration.
Formula:
Lump sum amount = (1/10 x total salary) xl
Where,
-
Total salary = basic pay + da
-
L = Number of half -yearly done during jobs (the number of half year for a 10 -year job i.e. L = 20 will be.)
Also read: NFO vs iPO: How much is NFO’s way to invest in mutual funds? Do you understand it like an IPO? Remove confusion immediately
How many money will you get after 30 years of job?
According to the government, if an employee is Rs 45,000 at the time of retirement and DA is Rs 53% i.e. Rs 23,850, then their:
Total salary = 45,000 + 23,850 = 68,850 rupees
Now, if the employee has completed a 30 -year job, he must have completed 60 half a half (30 years = 60 half).
Out of lump sum payment = (1/10 x 68,850) x 60 = 6,885 x 60 = 4,100 Rs.
Thus, after 30 years of job, the employee will get a lump sum of about 4.13 lakh rupees.
Also Read: Mutual Fund Toppers: 14 Maharathi of equity mutual funds! Best returns given in every category for 5 years
Other benefits of UPS
-
Minimum pension guarantee: The UPS scheme guarantees minimum pension after retirement, which provides financial security for employees.
-
Inflation Index: Pension will increase from time to time on inflation rate basis.
-
Family Pension: After the death of an employee, the family will get the benefit of pension.
-
Gratuity: Gratuity will also be paid at the time of retirement.
Also Read: SBI Har Ghar Lakhpati: What is SBI’s every household plan? How much will you have to invest every month to get 1 lakh rupees
The unified pension scheme guarantees financial security and pension to government employees. Using UPS calculator, employees can easily guess the lump sum amount received at the time of their pension and retirement. The scheme will be implemented from 1 April 2025 and its objective is to meet their economic needs after retirement of employees.