UPS- Big news for central government employees. The month of June is about to end. At the end of this month, the deadline for an alternative scheme related to central employees will end. Actually, under the National Pension System (NPS), central government employees have time till June 30, 2025 to join the newly launched Unified Pension Scheme (UPS). This means that the deadline to join UPS is June 30.
The scheme is effective from April
The Integrated Pension Scheme is officially effective from 1 April 2025. It provides assured monthly payments after retirement, unlike the current provisions of the NPS. The Department of Financial Services, Ministry of Finance formalized this change in a notification dated 24 January 2025.
The scheme aims to provide enhanced retirement benefits including retirement and death gratuity in line with the Central Civil Services (Payment of Gratuity under NPS) Rules, 2021. It covers all central government employees enrolled in the NPS and in service as on 1 April 2025.
Let us tell you that UPS guarantees a pension equal to 50% of the average basic salary in the 12 months preceding retirement, provided the employee has served for at least 25 years. Additionally, a minimum guaranteed pension of Rs 10,000 per month is assured on retirement after at least 10 years of service.
What about family pension?
In case of death of the subscriber after retirement, family pension equal to 60% of the last pension is payable to the surviving spouse. This ensures financial security for the family.
How can you choose the option?
Employees can opt for this scheme online through the e-NPS portal by entering their Permanent Retirement Account Number (PRAN) and other relevant details. For offline option, Form A2 needs to be submitted to the nodal office.