UPS Pension– If you are a central government employee, then this news may be useful for you. Actually, the central government had started a new scheme from April 1, 2025. Under this scheme, central government employees also get a minimum pension of Rs 10,000. Let us know about the scheme in detail.
Under this scheme, there is a provision to give 50 percent of the average basic salary received in the 12 months before retirement as a guaranteed pension. For a minimum qualifying service of 25 years, a pension of 50 percent of the average basic salary received in the last 12 months before retirement is given. This salary will be proportional to the minimum service period of 10 years. There is also a facility of family pension. 60 percent of the employee’s pension is given to the family just before his death. Under the scheme, in addition to gratuity, a lump sum is paid on retirement.
These rules enable enrolment of Central Government employees including existing Central Government employees in service as on April 1, 2025, and employees recruited in Central Government services on or after April 1, 2025, into NPS. Enrolment and claim forms for all these categories of Central Government employees are available online on the Prot CRA website from April 1, 2025.
Employees also have the option of submitting the form physically. UPS or Assured Payment option will not be available in case of removal or termination of service or resignation of the employee.
Difference between OPS and UPS
Let us tell you that under the Old Pension Scheme (OPS) effective before January 2004, employees used to get 50 percent of their last basic salary of their tenure as pension. Unlike OPS, UPS is of contributory nature. In this, employees will have to contribute 10 percent of their basic salary and dearness allowance, while the employer (Central Government) will contribute 18.5 percent.
This new scheme was approved by the Union Cabinet on August 24, 2024 last year. The government says that this scheme will benefit about 23 lakh central government employees. If the state governments also adopt it, then this number can go up to 90 lakhs. But the most special thing about this scheme is that 50% pension is being guaranteed in it, provided the employees fulfill certain conditions. Now it is important to understand these conditions, so that it is clear who will be entitled to this benefit.