There is big news for central employees. The Unified Pension Scheme (UPS) is going to be implemented from 1 April 2025. This is a new pension scheme launched by the central government for government employees. Pension Fund Regulatory and Development Authority (PFRDA) has issued a notification to implement the scheme. About 23 lakh central employees will benefit from its implementation.
Unified Pension Scheme (UPS) details
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The aim of UPS is to balance government financial policy and employee benefits.
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In this scheme, 50% of the average basic salary of 12 months before retirement will be given as pension.
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Employees who have completed minimum 10 years service will be given a fixed pension of ₹ 10,000.
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The scheme will be available as an alternative option under the National Pension System (NPS).
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Employees can choose one of NPS and UPS.
Benefits of family pension
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If the employee dies, the family will get 60% of the pension.
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Employees will contribute 10% of their basic salary, while the government’s contribution will be 18.5%.
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The government contributes 14% to the NPS.
How to enroll in UPS?
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From 1 April 2025, eligible employees can enroll by visiting online protein Cra portal (https://npscra.nsdl.co.in).
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Employees can also submit physical form if they want.
Significantly, on 24 January 2025, the government notified UPS under NPS, which is going to be implemented now. This will provide better pension security to government employees.
