Big announcement of the central government regarding UPS!
The central government has made a big announcement regarding the pension scheme before the budget. The government has announced the implementation of Unified Pension Scheme (UPS) as an option for central government employees. This scheme will be an alternative option under the National Pension System (NPS). UPS has been prepared by combining the major issues of the old pension system (OPS) and NPS. This scheme has been brought with the aim of providing financial stability and financial security after retirement.
Objective and eligibility of the scheme
The objective of the Unified Pension Scheme is to provide a fixed pension to government employees after their service life. This scheme will be applicable to those employees who already come under NPS and opt for UPS. According to the notification issued by the government, assured payment will be given in these cases under this scheme.
Superannuation (regular retirement): After completion of 10 years of service.
Retirement under FR 56(j): When the government retires the employee under FR 56(j) (this will not be under punishment).
Voluntary retirement: After completion of minimum 25 years of service.
However, employees who are dismissed, expelled or resign from service will not get the benefit of this scheme.
What are the benefits of the scheme?
On completion of 25 years of service, 50 per cent of the average basic pay of 12 months before superannuation will be given as assured pension. Apart from this, on service of less than 25 years, the pension amount will be given in proportion to the service. At the same time, on retirement after 10 or more years of service, a minimum pension of Rs 10,000 per month will be given. Whereas, after the death of the pensioner, his wife/husband will be given 60 per cent of the pension. At the same time, Dearness Relief will be given to the pensioners and their families along with the pension. This will work just like dearness allowance and will be applicable after pension starts.
