The Pension Fund Regulatory Authority of India (PFRDA) has notified that the Unified Pension Scheme (UPS) for central authorities staff will grow to be operational from April 1, 2025.
The UPS guarantees to present authorities staff an assured pension of fifty% of their common primary pay drawn over the previous 12 months, previous to superannuation.(Reuters)
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What does the UPS promise?
The UPS guarantees to present authorities staff an assured pension of fifty% of their common primary pay drawn over the previous 12 months, previous to superannuation.
What’s Superannuation?
Superannuation refers to an organization’s pension plan, or the retirement scheme provided by employers to their staff.
With this, tax profit funds are collected in particular person worker accounts until their age of retirement.
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Who’s eligible for UPS?
The NPS and UPS choices can be found to 23 lakh central authorities staff throughout India. Nevertheless, this isn’t for these staff who’re eliminated, dismissed or have resigned from service.
entry the UPS enrollment kinds?
All central authorities staff can discover the enrolment and declare kinds on-line from April 1, 2025 on the official web site of Protean CRA. Nevertheless, the kinds may also be submitted bodily for many who select to.
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What’s new with the UPS?
With the UPS, the complete fee of assured payout is 50% of 12 months’ common primary pay, instantly previous to superannuation, for a minimal qualifying service of 25 years in opposition to a market returns linked payout below the NPS, as per the report.
The UPS was authorised by the Prime Minister Narendra Modi-led Union Cupboard on August 24, 2024 whereas the NPS had already come into impact on January 1, 2004.
The UPS can also be contributory in nature, with staff required to contribute 10 per cent of their primary wage and dearness allowance whereas the employer’s contribution (the central authorities) can be 18.5 per cent.
The eventual payout additionally relies upon available on the market returns on that corpus, that are principally invested into authorities debt.