Unified Pension Scheme (UPS): Government employees received a significant update on April 1st. They can now take advantage of the Unified Pension Scheme, which offers a pension of 10,000 rupees. However, there are specific eligibility criteria that must be met.
Option to choose between New Pension Scheme and the Unified Pension Scheme
Additionally, employees have the choice between the New Pension Scheme and the Unified Pension Scheme. This initiative aims to strike a balance between the Old Pension Scheme (OPS) and the New Pension Scheme (NPS).
How the pension scheme will work
Under the Unified Pension Scheme (UPS), 10% of each employee’s salary will be contributed to their pension, with the government adding 18.5% on top of that.
Here are the requirements to qualify for the scheme
Firstly, every employee must contribute 10% of their basic salary towards the pension. The government will match this with an 18.5% contribution. Employees are also required to have a minimum of 10 years of service. However, if an employee retires without penalty under FR 56(j), they will still receive their pension. Additionally, those who opt for voluntary retirement after 25 years of service can also benefit from this pension.
Who is ineligible for this pension scheme?
– Employees with less than 10 years of service.
– Those who have been dismissed from their position.
– Individuals who voluntarily left their job.
The scheme guarantees a pension of 10% of the basic salary plus DA
With the UPS, every employee receives a lump sum upon retirement. The scheme guarantees a pension of 10% of the basic salary plus dearness allowance (DA). If the beneficiary passes away, their family will receive 60% of the pension, which translates to a guaranteed amount of 6,000 rupees. The Unified Pension Scheme, or UPS, is specifically designed for retirement, ensuring employees receive a guaranteed pension along with minimum pension benefits and family pension options.