Unified Pension Scheme: Top 5 Benefits, Eligibility, and Contribution Details”

Unified Pension Scheme (UPS)

Unified Pension Scheme: Before assembly polls in Haryana and Jammu and Kashmir the Narendra Modi led NDA government on Saturday cleared the file on the Unified Pension Scheme (UPS) which will ensure federal government employees 50 per cent of their basic pay as pension follows other demands of state employees which were pending for long.

Informing about the new UPS, Union Information and Broadcasting Minister Ashwini Vaishnaw said that government employees would now be allowed to get 50 percent of the average of last 12 months basic pay before the superannuation as pension for UPS.

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The announcement was made at a time when many non-BJP ruled states have wanted to go back to the DA linked Old Pension Scheme (OPS), and the employees’ associations in some other states have demanded the same.

Last year, the finance ministry has formed a committee for the pension fund under Finance Secretary TV Somanathan to look at the pension scheme of the government employees so that they could have a regular income during the post employment period.

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The Finance minister had invited the panel to recommend any amendments that it felt was necessary looking at the existing structures and frameworks of the National Pension System.

Eligibility

• The UPS is to be rolled out from 1 st April 2025.
• Ashwini Vaishnaw said that the new UPS is expected to cover 230 lakh employees and would be voluntary for existing Central government employees enrolled under NPS.
• Nonetheless, the total number of employees that come under the UPS may go up to 90 lakh if the state employees also join in the UPS framework, according to Vaishnaw.

The obvious advantages pertaining to the Unified Pension Scheme are as follows:

• Guaranteed pension: Untied Pension Scheme or UPS would entail an assured pension of 50 per cent of the average of the basic wages earned by the employee during the last one year before opting for superannuation as long as he has completed 25 years of service.
• Guaranteed family pension: Family pension will be provided to the legal heir of an assured pension can also be availed by the spouse of the employee in case any occurs.
• Inflation indexation: The scheme envisaged had provisions of automatic increase in the index for assured pension, assured family pension and the assured minimum pension.
• Dearness Relief: The retirees under UPS will also be eligible to receive Dearness Relief as per the AICPI-IW as the case with serving employees.
• Lump sum amount on Retirement: Apart from gratuity, the following golden dismantle – – One tenth month emolument of pay and DA as on the date of retirement the for every completed six month service.

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