There is good news for 23 lakh employees of the central government. The central government is bringing a new scheme Integrated Pension Scheme (UPS) for its employees. Under this scheme,central employees who have been serving for at least 25 years will be eligible to receive a pension of 50 percent of their average basic salary of the last 12 months before retirement under UPS from April 1.
With this scheme,the government is preparing to provide financial security to at least 23 lakh central employees after retirement. UPS is being brought especially keeping in mind those who prefer stable and predictable income instead of market-linked pension. Do you also want to know what benefits you will get from this scheme? So let’s know.
Know the new rules of pension
Under the new scheme,employees who have served for more than 10 years but less than 25 years will get a minimum pension of Rs 10,000 every month. In the event of the death of the pensioner,his family will get 60 percent of the last pension as a family pension.
Also,central government employees who are currently under the National Pension Scheme (NPS) can switch to UPS. The scheme has been designed as a hybrid model,combining features of both the Old Pension Scheme (OPS) and the National Pension System (NPS).
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Know why the new rule was introduced
While NPS offers market-based returns without any fixed payouts,the new scheme,unlike NPS,ensures guaranteed pension income. OPS was replaced by NPS in 2004. UPS has been introduced given growing concerns about the uncertainties of NPS among government employees.
UPS notification released
Many government employees demanded a more predictable pension system to ensure financial stability after retirement. The government aims to balance employee security with their financial responsibilities through this new scheme.
Those who have served for more than 25 years will benefit the most with a 50 per cent guaranteed pension. Last week,the Pension Fund Regulatory and Development Authority (PFRDA) issued a notification in this regard. Central government employees will be able to apply on the portal from April 1.
