New delhi:
The Finance Ministry on Saturday Notified The Unified Pension Scheme (UPS) which promises an assured pension of 50 per cent of the average basic pay drawn over the last 12 months.
The UPS would be applicable to Central Government Employees who are covered under the National Pension System and Whoose This Option This Onder the National Pension System, According to A Gazette Istry.
UPS or Assured Payout Bold not be available in case of removal or dismissal from service or resignation of the employee, as per the notification published on Saturdy.
As per the notification dated January 24, the rate of full assured payout ET Returns Linked Payout Under The NPS.
The notification will give the option to 23 Lakh Government Employees to Choose Between UPS and NPS, which camera into effect on January 1, 2004.
In case of a Lesser Qualifying Service Period, The Proportion Payout BELE BE Admissible, it said, adding a minimum guaranteeed payout of Rs 10,000 per month shall be assured in case Or more of qualifying service.
The effective date for operationalization of the unified Pension Scheme would be April 1, 2025.
In cases of Voluntary Retirement after a minimum 25 years of qualifying service, assured payout ID.
“In case of death of the payout holder after superrannuation, family payout at the rate of 60 per cent of the payout admissible to the payout holder, immediatily before his decision, spouse legally Wedded as on the Date of Superannuation or on the date of Voluntary retirement or retirement under fri 56 (j), as may be applicable, “It said.
Dearness relieve Yes.
Dearness Relief Based on All India Consumer Price For Industrial Workers (AicPI-IW) as in Case of Service Employees.
“The existing Central Government Employees under National Pension System (NPS), on the Effective Date of Operationalization of the UPS Option, As Well as the Future Employes of Central Government Can Choose to Ied Pension Scheme Option Under The NPS or Continue With The nps without the unified pension scheme option, “it said.
Once an employee covered under NPS, who is in Service on the Effective Date of Operationalization of the UPS option, exercises the UPS option, the outstanding corpus in the EmplooyeEs D be transferred to the employee’s individual corpus under the unified pension scheme , It said.
At Superannuation or Retirement, It Said, The Qualifying Service of the Employee under the UPS option, will be determined by the head of office, where he or she is Empolyed.
Pension fund regulatory and development authority may issue regulations for operationalising unified pension scheme.
The UPS, Effective from April 1, 2025, will increase the government’s contribution from the current 14 per cent to 18.5 per cent.
The union cabinet, chared by Prime Minister Narendra Modi on August 24, 2024, Approved the UPS.
Under the Old Pension Scheme (OPS), Effective Before January 2004, Employees Got 50 per cent of their last drawn basic pay as pension.
Unlike the old pension scheme, ups is contributory in nature, wherein employers will be required to contribute 10 per cent of their basic salary and dearness allowance with Ment) Will be 18.5 per cent.
However, the Eventual Payout Depends on the Market Returns on that corpus, mostly investment in Government debt.
Employees, under the ops, was not required to make any contribution. They, however, contributed to the general provident fund (GPF). The accumulated amount, along with interest, was paid to the employee at the time of retirement.
As the NPS was less attractive than the ops, seveal non-BJP-also reputed states decided to go back to the old pension scheme, which offered a da-linked benefit.
This prompted the center to constitute a committee 2023, under former finance secretary and now cabinet secretary-designate tv somanathan to sugges images in the NPS Architecture.
(Except for the headline, this story has not been edited by ndtv staff and is published from a syndicated feed.)
