UPS Update: Unified Pension Scheme News Update: UPS has all the good things of Old Pension Scheme and New Pension Scheme and its specialty is that it guarantees assured pension after retirement.
UPS Update: Unified Pension Scheme: The Unified Pension Scheme for Central Government Employees will be implemented from April 1, 2025, but it can be launched earlier. The government may issue a notification regarding the Unified Pension Scheme on October 15, 2024 during the festive season. The new pension scheme is among the major priorities of the government and it is being finalized, which will benefit lakhs of central employees.
Round of meetings regarding Unified Pension Scheme
According to the report of Economic Times, Cabinet Secretary TV Somanathan is constantly holding meetings with different ministries and departments regarding the Unified Pension Scheme so that the new pension scheme can be implemented easily. While being the Finance Secretary, TV Somanathan was the chairman of the committee which was given the responsibility of reviewing the National Pension Scheme. Based on the recommendations of the Somanathan Committee, the government has decided to introduce the Unified Pension Scheme (UPS).
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What is the specialty of UPS
In the Unified Pension Scheme, the average of the basic salary + DA of the central government employees for the 12 months before their retirement will be given as assured pension. In the Unified Pension Scheme, employees will have to contribute to the Pension Fund. Employees will have to contribute 10% of their basic pay and DA in UPS to the pension fund, just like they have been doing in NPS. The government will contribute 18.5% from its side to the pension fund for the employee, which was 14% in NPS. That is, the government is going to increase its contribution to UPS. In the Unified Pension Scheme, government employees will be entitled to get assured pension only after at least 25 years of service under the prescribed formula. This new pension scheme will benefit 23 lakh government employees and the big feature of this pension scheme is that on retirement, the employees will get assured pension which was not there in NPS.
Cabinet had approved UPS
On August 24, 2024, in the cabinet meeting chaired by Prime Minister Narendra Modi, it was decided to launch a unified pension scheme for government employees by approving the new pension scheme.
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