Pension Fund Regulatory and Development Authority (PFRDA) has recently completed the regulations required to implement UPS. The scheme will apply to three groups of central government employees.
Unified Pension Scheme (UPS) is being launched from today. In such a situation, National Pension Scheme (NPS) customers can now shift to the new pension scheme UPS. It is designed to offer guaranteed pension, government contribution and increased investment flexibility to central government employees after retirement. Migration from NPS to UPS is currently available on the official CRA (Central Recordkeeping Agency) portal.
Eligible persons wishing to switch from National Pension System (NPS) to Unified Pension Scheme (UPS) can easily start the migration process by visiting the official website npscra.nsdl.co.in/ups.php. You can also switch from NPS to UPS by submitting the form physically.
UPS Rollout
The Unified Pension Scheme (UPS) launched by the Central Government represents a significant change in the retirement benefit structure for employees enrolled in the National Pension System (NPS).
The Pension Fund Regulatory and Development Authority (PFRDA) has recently completed the regulations required to implement UPS. This scheme will be applicable to three groups of central government employees. This scheme has come into effect from 1 April 2025 i.e. today. Employees who choose the option of NPS can also avail this benefit. About 23 lakh government employees are going to benefit from this expansion.
Who will be eligible?
- Employees who have served for 10-25 years will receive pension in proportion to their years of service, resulting in higher payouts for longer periods. Individuals who complete a minimum of 10 years of service will be given a pension of at least Rs 10,000 per month.
- Under the UPS scheme, employees contribute 10% of their Basic Salary and Dearness Allowance towards pension, with the government also matching this contribution, thus investing a total of 20% of the salary.
- While the government’s default schemes manage these contributions, employees have the option to choose a private pension fund manager for their investments.
- UPS also provides financial support to the spouse of the pensioner. In the event of the pensioner’s death, the spouse will receive 60% of the pension amount, ensuring financial stability for retired individuals and their families.
You can apply from today
From April 1, eligible employees can easily enroll in the UPS program through the Protege CRA portal. Employees will have the option to submit their nomination and claim form electronically. Under the new pension scheme, 50% pension will be given on the basis of average basic pay of the last 12 months before retirement. Provided that the employee has completed a minimum of 25 years of service.
In case of death of an employee, 60% of the pension will be given to his family. Apart from this, UPS guarantees a minimum pension of Rs 10,000 per month, provided the employee has served for a minimum of 10 years.
Retirement Withdrawal
After retirement, employees will get pension from their savings. Just like mutual funds have systematic withdrawal plan (SWP). If their savings are exhausted before their or their spouse’s death, the payment will be given by the government.
Currently, the Unified Pension Scheme (UPS) is available only to central government employees. State governments will decide whether to implement this program for their employees or not.
