Major Changes in Government Employees' Pension: New Rules Effective from April 1
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Major Changes in Government Employees' Pension: New Rules Effective from April 1
Unified Pension Scheme: A Revolutionary Change for Government Employees
The Unified Pension Scheme (UPS) is set to bring a significant transformation in the retirement benefits of government employees. With guaranteed pensions post-retirement, this scheme aims to enhance financial stability for employees who have served for 25 years or more and seek a secured income after retirement.
Who is Eligible for This Pension Scheme?
The benefits of the Unified Pension Scheme (UPS) will be available to government employees who are in service as of April 1, 2025, and are already covered under the National Pension System (NPS). Additionally, employees joining central government services after April 1, 2025, will also be eligible.
Who Will Not Be Eligible?
Employees dismissed from service.
Those terminated from their jobs.
Employees who have voluntarily resigned.
Old Pension Scheme (OPS) vs. New Unified Pension Scheme (UPS)
In 2004, the central government replaced the Old Pension Scheme (OPS) with the National Pension System (NPS).
Under NPS, pension amounts depended on market-linked returns, making them subject to fluctuations in stock markets and government bonds.
The new Unified Pension Scheme (UPS) ensures a minimum guaranteed pension, providing greater financial security to employees.
Benefits of the Unified Pension Scheme (UPS)
Pension amount will be 50% of the last 12 months’ average basic salary.
Employees completing at least 25 years of service will be eligible for this scheme.
Employees must contribute 10% of their basic salary + DA.
The government will contribute 18.5%, strengthening the pension fund.
How to Apply for the Unified Pension Scheme?
Government employees can apply online from April 1, 2025.
Registration will be available on the official website of Protean CRA.
Offline application facilities will also be provided.
Approval Timeline for Unified Pension Scheme
The Unified Pension Scheme (UPS) received approval from the central government on August 24, 2024.
The objective of this scheme is to provide a fixed income to retired government employees, ensuring their financial security post-retirement.
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