The government has issued a notification regarding the Unified Pension Scheme (UPS) and it will come into effect from April 1, 2025. This scheme will be an important option for existing and new central government employees under the National Pension System (NPS). If employees choose this scheme, they will get better pension benefits and retirement security.
In this article, we will understand the complete information of Unified Pension Scheme, its benefits, eligibility, and application process in detail.
Unified Pension Scheme (UPS) has been developed by the government to provide a new option under NPS.
This scheme will be a combination of Old Pension Scheme (OPS) and New Pension Scheme (NPS).
- In this, the pension fund will be divided into two parts:
- First part – It will include contributions from both the employee and the government.
- Second part – It will have additional contribution from the government.
- This scheme will be more beneficial for government employees as it guarantees them 50% of their last salary after retirement.
- UPS will be implemented from April 1, 2025.
Benefits under Unified Pension Scheme
- The pension in UPS will be divided into two parts – a personal fund and a government fund.
- Monthly pension equal to 50% of the last salary will be available.
- This will be similar to the Old Pension Scheme (OPS).
- The pension will increase every year according to inflation (DA Adjustment).
- On the death of the employee, the family will get 60% family pension.
- Lump sum superannuation payment and gratuity benefits will be available on retirement.
- Employees who serve for at least 10 years are guaranteed a monthly pension of ₹10,000.
- Those who are already under NPS can choose UPS and will be given additional funds.
Why was the Unified Pension Scheme introduced?
- The government wanted to address the concerns of employees related to NPS.
- Many employees wanted pension security like OPS.
- Therefore, the government created UPS by combining the best features of NPS and OPS.
- Through UPS, employees will get more benefits than NPS and their retirement security will increase.
- UPS was proposed in August 2024 and will now be implemented from April 2025.
Eligibility for Unified Pension Scheme
Central Government employees who are already enrolled in NPS. New employees joining the Central Government after April 1, 2025. Employees who have served for at least 10 years will be eligible for minimum pension. Employees have to actively apply to join this scheme.
How to apply for Unified Pension Scheme?
- The government will soon start the application process on the official portal.
- Employees can fill the application form by logging in online.
- Employees can apply for UPS by visiting their nearest EPFO office or bank branch.
- Employees who are already in NPS can apply for transfer to UPS.
The government will soon release the official website and helpline number from where employees will be able to enroll in UPS.
Difference between Unified Pension Scheme and Old Pension Scheme (OPS)
UPS will provide the same benefits as OPS, but it will provide more financial security.
- Who will benefit the most from the Unified Pension Scheme?
- Central Government employees, who are in NPS and want protection like OPS.
- Retired employees who are getting less pension under NPS.
- New Government employees who want the best benefits of pension scheme.
This scheme will prove to be a big change for the government employees.
Unified Pension Scheme (UPS) is a great scheme for government employees, which will be implemented from 1 April 2025. This scheme will provide great benefits like 50% final salary guarantee, dearness relief, family pension and gratuity.
Employees who are in NPS can now join UPS. The government will soon start the online application process. This scheme will be similar to OPS but with additional benefits.
If you are a government employee, then definitely join this scheme and make your retirement secure!
