The Unified Pension Scheme (UPS), launched by the central authorities as a substitute for the Nationwide Pension System (NPS), will come into impact on April 1, the federal government introduced earlier this 12 months.
Beneath the UPS, authorities staff will contribute 10% of their fundamental wage, together with the dearness allowance, whereas the federal government’s contribution will improve to 18.5% from 14% earlier.(Reuters)
UPS will probably be obtainable to eligible central authorities staff who’re already enrolled within the NPS as an possibility.
Additionally Learn: ‘No amount of meditation sessions will fix that’: Enterprise capitalist Dilip Kumar on worker stress
UPS advantages and eligibility
The UPS was introduced in because of an ongoing request from authorities staff for the reinstatement of the Previous Pension Scheme (OPS) which ensured that retirees obtained 50 per cent of their ultimate wage as pension.
Beneath the UPS, authorities staff will contribute 10 per cent of their fundamental wage, together with the dearness allowance (DA), whereas the federal government’s contribution will improve to 18.5 per cent from 14 per cent earlier.
Other than this, there may even be a separate pooled fund supported with an additional 8.5 per cent contribution from the federal government.
In consequence, the UPS programme offers members a pension equal to 50 per cent of the common fundamental wage from the final 12 months.
Additionally Learn: ‘Dystopian future’: Sanjeev Bikhchandani compares Elon Musk’s affect on US govt to India’s colonial historical past
Nonetheless, this profit is out there solely to authorities staff who’ve accomplished not less than 25 years of service. Workers with 10 to 25 years of service will obtain a prorated pension quantity.
In unlucky occasions of a authorities worker’s demise, the members of the family will obtain 60 per cent of the pension.
It additionally will get superannuation advantages as a result of along with gratuity, a lump sum cost can be offered upon retirement.
Workers with a minimal of 10 years of service will obtain a pension of not less than ₹10,000 monthly.
Additionally Learn: Customary Chartered appoints former JP Morgan India chief PD Singh as India CEO
Workers who select to retire voluntarily after finishing not less than 25 years of service may even be eligible with pension funds commencing from the worker’s anticipated superannuation age.
Former retirees of the NPS who retired earlier than the implementation of the UPS are additionally eligible to obtain advantages below the scheme.
They are going to be supplied with arrears for the earlier interval together with curiosity calculated primarily based on the Public Provident Fund charges.