UPS Latest News: In 2003, Atal Bihari Vajpayee’s government abolished OPS and introduced NPS. NPS is effective from 1 April 2024. Employees with OPS can also opt for UPS. It will be effective from 1 April 2025.
UPS Rollout Date: In August 2024, the central government announced the launch of the Unified Provident Scheme (UPS) for central government employees. About 23 lakh employees are expected to benefit from this scheme. Unlike the currently running National Pension System (NPS), UPS is an alternative arrangement for central government employees. That is, it is up to the employees whether they want to be a part of this scheme (UPS) or NPS.
According to a report by the English website Economic Times, the government will announce the Unified Pension Scheme (UPS) rules by October 15, 2024. The scheme will come into effect from April 1, 2025. Cabinet Secretary TV Somanathan is leading coordination efforts between various departments to ensure its implementation.
Work assigned to different departments
The Ministry of Personnel and Training will assess the preferences of the employees, while the Department of Administration Reforms and Personnel Grievances will make rules and regulations for the scheme. At the same time, the Pension Fund Regulatory and Development Authority (PFRDA) will oversee the investment components of the scheme. Apart from this, the Department of Pension and Pensioners’ Welfare and the National Security Depository Limited (NSDL) are working on designing and operating this scheme.
Somanathan Committee recommended UPS
The Modi government constituted a committee under the leadership of TV Somanathan in April 2023. This committee has discussed with all the state financial secretaries, leaders and hundreds of employee unions and has recommended the central government to implement UPS. In the year 2003, Atal Bihari Vajpayee’s government abolished OPS and introduced NPS. NPS is applicable from 1 April 2024. Employees with OPS can opt for UPS. It will be applicable from 1 April 2025.
Unified Pension Scheme guarantees a fixed pension. Under UPS, the employee will be given a pension of 50 percent of the average basic salary of the 12 months before retirement. However, the condition for this is that the employee has worked for 25 years.
