Unified Pension Scheme (UPS) takes impact from April 1: Know eligibility, advantages
The Unified Pension Scheme (UPS), launched by the central authorities as a substitute for the Nationwide Pension System (NPS), will come into impact on April 1, the federal government introduced earlier this 12 months.
UPS might be obtainable to eligible central authorities staff who’re already enrolled within the NPS as an possibility.
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UPS advantages and eligibility
The UPS was introduced in on account of an ongoing request from authorities staff for the reinstatement of the Previous Pension Scheme (OPS) which ensured that retirees obtained 50 per cent of their ultimate wage as pension.
Below the UPS, authorities staff will contribute 10 per cent of their fundamental wage, together with the dearness allowance (DA), whereas the federal government’s contribution will enhance to 18.5 per cent from 14 per cent earlier.
Other than this, there will even be a separate pooled fund supported with an additional 8.5 per cent contribution from the federal government.
In consequence, the UPS programme offers contributors a pension equal to 50 per cent of the typical fundamental wage from the final 12 months.
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Nonetheless, this profit is offered solely to authorities staff who’ve accomplished a minimum of 25 years of service. Workers with 10 to 25 years of service will obtain a prorated pension quantity.
In unlucky occasions of a authorities worker’s demise, the members of the family will obtain 60 per cent of the pension.
It additionally will get superannuation advantages as a result of along with gratuity, a lump sum fee can be supplied upon retirement.
Workers with a minimal of 10 years of service will obtain a pension of a minimum of ₹10,000 monthly.
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Workers who select to retire voluntarily after finishing a minimum of 25 years of service will even be eligible with pension funds commencing from the worker’s anticipated superannuation age.
Former retirees of the NPS who retired earlier than the implementation of the UPS are additionally eligible to obtain advantages underneath the scheme.
They are going to be supplied with arrears for the earlier interval together with curiosity calculated primarily based on the Public Provident Fund charges.
