Good news for central employees. A new program called the Unified Pension Scheme (UPS) is set to launch on April 1. This initiative, introduced by the government for its employees, was officially announced by the Pension Fund Regulatory and Development Authority (PFRDA) on Thursday. According to their statement, the regulations for UPS will take effect on April 1, 2025, and it is expected to benefit around 2.3 million central employees.
So, what’s the scoop on this scheme?
The UPS is designed to balance the government’s financial policies with the benefits for employees. It guarantees a pension amounting to 50% of the average basic salary earned in the last year before retirement, with a minimum pension of Rs 10,000 per month for those who have served at least 10 years.
In contrast, the Old Pension Scheme (OPS) did not specify a minimum pension, but retirees typically received 50% of their final salary. Employees will have the option to choose between the National Pension System (NPS) and UPS.
Family pension benefits are also included. If a central employee passes away, their family will receive 60% of the employee’s pension. Employees will contribute 10% of their basic salary to the scheme, while the government will contribute 18.5%. For comparison, the government contributes 14% under the NPS. This scheme is available to central employees enrolled in the NPS who opt for it, and those with at least 10 years of service will qualify for the guaranteed minimum pension.
How to sign up?
1. Eligible employees can complete their enrollment and claim form online via the Proteg CRA portal (https://npscra.nsdl.co.in) starting April 1, 2025.
2. They also have the option to submit their forms in person.
3. On January 24, 2025, the government announced the UPS as a new pension framework for central government employees under the NPS.