Unified Pension Scheme- There is a big news for pensioners. The Finance Department has constituted a five-member committee to take a decision regarding the Unified Pension Scheme (UPS) in Bihar. This committee, headed by Special Secretary Mukesh Kumar Lal, will study the UPS implemented in the Centre and other states and submit its report to the Finance Department within two months. After that, a final decision will be taken on implementing it in Bihar.
If the government decides in its favour, then UPS will be an option for Bihar government servants in addition to the New Pension Scheme (NPS) like the Centre. UPS has been implemented in the Centre from April 1 this year.
After that the central government has urged the states to implement it. It is noteworthy that in the matter of pension scheme, Bihar sooner or later follows the Centre. NPS, which replaced the Old Pension Scheme (OPS), is proof of this.
Composition of the Committee:
Special Secretary Mukesh Kumar Lal will preside over the committee. Joint Commissioners Ajay Kumar Thakur and Brajesh Kumar and Senior Treasury Officers Neel Kamal and Prem Pushp Kumar have been made members of the committee.
Difference and feature
UPS has less risk as compared to NPS. Current economics shows that where there is more risk, there is also a higher possibility of returns. However, it is not fixed. Like UPS has a fixed pension guarantee. NPS is market linked, in which the returns depend on the performance of the stock market and bonds.
Pension in NPS depends on investment, while UPS guarantees a minimum monthly pension of Rs 10,000. Government servants who have completed at least 25 years of service will get a guaranteed pension equal to 50 percent of the average basic salary of the last 12 months before retirement. In this, you will also get the benefit of tax-free contribution up to 14 percent. Along with this, the government will contribute an additional 8.5 percent. It is important that once you choose UPS, it is not possible to return to NPS.