UPS- Good news for pensioners. The Finance Ministry has extended the deadline to opt for either the Unified Pension Scheme (UPS) or the National Pension Scheme (NPS) by 3 months. Earlier, this deadline was June 30, which has now been extended to September 30. Keeping in mind the demands of all stakeholders, the Central Government has extended this deadline.
The notification issued by the Finance Ministry has said that the Central Government has given an additional time of 3 months to its employees to choose between NPS and UPS. Employees who are currently contributing to NPS can transfer their funds to UPS by September 30, if they wish. After this, employees will not get a chance to change their option and they will always remain in NPS. The government will implement the UPS scheme from April 1, 2025.
What will happen if you do not opt?
The instructions issued with UPS state that central employees are required to opt for UPS before September 30. If an employee fails to do this, he will remain in NPS. This means that if someone has not opted for UPS, he will be considered in NPS and will get pension only as per NPS on retirement.
Which employees are eligible for UPS?
– All those government employees whose service started after April 1, 2025, can opt for UPS instead of NPS.
– Those central employees who have retired before March 31, 2025, will also get the opportunity to move from NPS to UPS.
How is UPS different from NPS?
In NPS, where the pension of employees depends entirely on the market and the investments made by them, there is no guarantee from the government. In UPS, the government guarantees to provide 50 percent of the employee’s basic salary as a pension after retirement. In NPS, the employee’s contribution is 10 percent and the government’s contribution is 14 percent. While in UPS, the employee’s contribution is 10 percent and the government’s contribution is 18 percent.