Are you a government employee? Was your appointment made in 2004 or later? If the answer to these questions is yes, then you will definitely know about N.P.S. Its mean National Pension Scheme. Although this scheme has the name of pension, there is no guaranteed pension in it. It is stock market dependent. This means that pension of this scheme depends on the returns of the stock market. And the difference between the New pension scheme and the old pension scheme was huge. So government employees were unhappy with the N.P.S. So the government employees held regular meetings and appealed to the government to implement their old pension scheme. But the government had no intention of implementing the old pension scheme. Then the government employees' union appealed to the government that even if the OPS is not implemented, then at least bring such a pension scheme in which the employees will at least get a certain pension after their retirement. Responding to this plea from employees, the government has introduced a pension scheme for government employees by the end of 2024 that will have the features of both the Old Pension and the New Pension Scheme. The name of this pension is U.P.S or Unified Pension Scheme.
Features of Unified Pension Scheme:
1. This pension scheme is only for the Central Govt Employees.
2. Assured Pension of 50% of Last basic pay drawn + Dearness relief.
3. It is different from NPS & Ops but has many features taken from them.
Eligibility:
1. Should be permanent employee of Central Government
2. Minimum 10 years of continue service.
Key Benefit:
1. Assured pension of 50% of last basis pay drawn (Avg of last 12 months basis)+ DR.
2. This will start from April 2025.
3. A minimum pension of 10,000 Rupees/months can be received if someone retires after working for 10 years.
4. If someone takes V.R., they have to serve at least 25 years.
5. Full pension will be available only after 25 years of service. If the service life is less than 25 years, the pension will be reduced proportionally.
6. both retirement gratuity and death gratuity are payable to eligible government employees. Retirement gratuity is calculated as 1/4th of the last drawn salary (basic pay + dearness allowance) for each completed six-month period of service, up to a maximum of 16.5 times the emoluments or Rs.25 lakh, whichever is lower. Death gratuity is also payable to the family/nominee of a deceased employee, with the amount varying based on their service tenure.
7. Family pension also get 60% of pension amount if pensioner died.
8. Pension will be available only when the employee reaches the age of 60. This is also applicable in the case of V.R.
How does UPS work?:-
1. Employee contribution of 10% if their basis salary.
2. Government contribution of 18.5% of basis salary of employee.
Although there are many drawbacks in UPS system but it will benefit 23 lakh government employees. Since it has a guaranteed pension, many government employees can opt it. But its main drawback is that the 10% contribution that has to be made is not refundable. So many employees are against it.
FAQs :
1. What is the unified pension scheme in India?
Ans. - Unified pension scheme U.P.S is the new pension scheme introduced by Central govt. assured pension of their employees after retirement.
2. Who is eligible for the UPS pension scheme?
Ans. - All central govt. employee having minimum 10 years of service.
3. How is UPS pension calculated?
Ans. - Calculating a pension is pretty straightforward: it’s set at 50% of the average basic pay (avg of last 12 months salary) before retirement, but only if the employee has put in at least 25 years of qualifying service. If someone has less than 25 years, their pension will be adjusted based on how long they’ve worked, but those with a minimum of 10 years of service are get guaranteed at least Rs 10,000 a month as a pension.
