PWOnlyIAS
August 27, 2024 01:30
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UPS Pension Scheme was introduced by the NDA Government and will be effective from FYP2025-26. It will benefit around 23 lakh central government employees.
UPS Pension Scheme: The Cabinet approved the Unified Pension Scheme (UPS) which will be set to take effect on April 1, 2025. It ensures that Government employees will get a guaranteed pension equivalent to 50% of the average basic pay drawn over the last 12 months before retirement. This scheme is approved for around 23 lakh central government employees. With the 2024 revisions and updates, this scheme has gained significant attention. Continue to read more about the UPS pension scheme, its benefits, and how it differs from other pension schemes like the Old Pension Scheme (OPS) and the National Pension System (NPS).
The UPS Full Form is the Unified Pension Scheme (UPS). The Unified Pension Scheme (UPS) is designed to provide a stable retirement income for government employees. Under this scheme, retirees will receive 50% of their average basic pay from the last 12 months of service. The government’s contribution to the scheme is increasing from 14% to 18.5%, though employee contributions remain unchanged.
In case of a retiree’s death, their family will receive 60% of the pension. Additionally, there is an assured minimum pension of ₹10,000 per month for those who retire after at least 10 years of service.
The NDA has launched the UPS Scheme for Central Government Employees to provide a reliable retirement income for government employees. To be eligible for this scheme, employees must meet certain service criteria:
The UPS Pension Scheme encompasses several key features that differentiate it from other pension schemes:
Under the UPS, if you complete 25 years or more of service, you’ll receive a pension equal to 50% of your average salary from the last 12 months before retirement. This pension will be adjusted for inflation through dearness allowance. UPS is calculated based on the following key
You can find online UPS Pension Scheme Calculators to know how is UPS Calculated.
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