{"id":26055,"date":"2025-01-27T12:40:11","date_gmt":"2025-01-27T07:10:11","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=26055"},"modified":"2025-04-07T23:19:40","modified_gmt":"2025-04-07T17:49:40","slug":"unified-pension-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/unified-pension-scheme\/","title":{"rendered":"Unified Pension Scheme"},"content":{"rendered":"<h2>Unified Pension Scheme Latest News<\/h2>\n<p>The Union Finance Ministry recently notified operationalisation of the Unified Pension Scheme (UPS) as an option under the National Pension System (NPS) for central government employees.<\/p>\n<h2>About Unified Pension Scheme (UPS)<\/h2>\n<ul>\n<li>UPS shall a<strong>pply to Central Government employees<\/strong> who are<strong> covered under the National Pension System (NPS) and who choose this option <\/strong>under the NPS.<\/li>\n<li>Both <strong>c<\/strong>urrent and future Central Government employees covered under the NPS have the option to choose between the UPS or continue with the existing NPS plan.\u00a0<\/li>\n<li><strong>Once a decision is made <\/strong>to switch to the UPS, it is considered<strong> final and binding.<\/strong><\/li>\n<li><strong>Pension Fund Regulatory and Development Authority (PFRDA) <\/strong>may <strong>issue regulations <\/strong>for operationalizing the UPS.\u00a0<\/li>\n<li>The effective date for operationalization of the Unified Pension Scheme shall be April 1, 2025.<\/li>\n<\/ul>\n<h2>Key Features of UPS<\/h2>\n<ul>\n<li>UPS provides a <strong>guaranteed payout <\/strong>to employees upon superannuation.<\/li>\n<li>UPS will <strong>offer 50% of the average basic pay drawn <\/strong>by a Central government employee during the 12 months prior to retirement, <strong>provided they complete25 years of service.<\/strong><\/li>\n<li><strong>Employees with less than 25 years<\/strong> of service <strong>but more than 10 years <\/strong>will receive a <strong>pension on a proportionate basis.<\/strong><\/li>\n<li>A <strong>minimum payout of Rs 10,000 per month <\/strong>is assured for <strong>employees with 10 <\/strong>or more<strong> years of qualifying service.<\/strong><\/li>\n<li>For those who choose to retire voluntarily after 25 years of service, the payout will begin from the date they would have reached superannuation if they had continued working.<\/li>\n<li>In the event of the<strong> payout holder&#8217;s death<\/strong> after superannuation, a <strong>family payout at 60% of the payout <\/strong>admissible to the holder will be given <strong>to the legally wedded spouse.<\/strong><\/li>\n<li>Additionally, <strong>dearness relief<\/strong> will be available o<strong>n the assured payout and family payout,<\/strong> calculated in the same manner. Dearness Relief will be worked out in the same manner as Dearness Allowance applicable to serving employees.<\/li>\n<li><strong>UPS <\/strong>or assured payout would <strong>not be available in case of removal or dismissal <\/strong>from service <strong>or resignation<\/strong> of the employee.<\/li>\n<\/ul>\n<h2>Contributions under the UPS<\/h2>\n<ul>\n<li>Unlike the old pension scheme, UPS is <strong>contributory in nature<\/strong>, wherein <strong>employees <\/strong>will be required to <strong>contribute 10 percent of their basic salary and dearness allowance while <\/strong>the <strong>employer&#8217;s <\/strong>contribution (the <strong>central government) will be 18.5 percent.<\/strong><\/li>\n<li>However, the eventual <strong>payout depends on the market returns<\/strong> on that corpus, mostly invested in government debt.<\/li>\n<\/ul>\n<h2>Unified Pension Scheme Latest FAQs<\/h2>\n<p><strong>Q1<\/strong>. Is UPS applicable for state government employees?<\/p>\n<p><strong>Ans<\/strong>. The state governments can also adopt and implement the UPS scheme for state government employees.\u00a0<\/p>\n<p><strong>Q2<\/strong>. What is the difference between UPS and OPS?<\/p>\n<p><strong>Ans<\/strong>. Under the OPS, the employee did not contribute at all. Under UPS, the employee will contribute 10% of their basic pay and the DA while the government&#8217;s share will be 18.5%<\/p>\n<p><strong>Q3<\/strong>. What is the family pension in UPS?<\/p>\n<p><strong>Ans. <\/strong>The UPS will also give out family or survivor-pension benefits, fixed at 60% of the last-drawn salary of a deceased employee.<\/p>\n<p><strong>Source<\/strong>: <a href=\"https:\/\/www.hindustantimes.com\/india-news\/central-govt-notifies-unified-pension-scheme-for-employees-101737816891343.html\" target=\"_blank\" rel=\"nofollow noopener\">HT<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unified Pension Scheme (UPS) shall apply to Central Government employees who are covered under the National Pension System (NPS) and who choose this option under the NPS.<\/p>\n","protected":false},"author":5,"featured_media":26056,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-26055","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/26055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=26055"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/26055\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/26056"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=26055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=26055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=26055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}