New Pension Scheme: The Unified Pension Scheme (UPS), which provides guaranteed pension to central government employees, will be launched from April 1. Existing and newly recruited employees will be able to apply to join the scheme.
New Pension Scheme: The Unified Pension Scheme (UPS), which provides guaranteed pension to central government employees, will start from April 1. Existing and newly recruited employees will be able to apply to join the scheme. The Pension Fund Regulatory and Development Authority (PFRDA) issued its notification on Thursday.
The application process on the portal for central government employees will start from April 1. They will have to fill the claim form to opt for UPS. Through this, more than 23 lakh employees of the central government will get the option to choose between UPS and NPS.
The National Pension Scheme (NPS) was implemented on January 1, 2004, but there was resentment among the employees due to not getting a fixed pension in NPS on the lines of the old pension scheme. Under OPS, 50 percent of the last basic salary of their tenure was given as pension. The demand for restoration of old pension was being made by the employee organizations for a long time. In view of this, the Union Cabinet approved the proposal of UPS on 24 August 2024.
How to join
1. Existing employees: Existing employees who joined government service after January 1, 2004, who have opted for NPS, can opt for UPS. They have to fill Form A2.
2. Newly recruited employees: New employees joining the service on or after April 1, 2025 can also choose this option. They have to fill Form A1.
3. Retired employees: Employees who have retired and were associated with NPS can also join UPS. They have to submit Form B2 along with KYC documents.
4. In case of death of employee: In case of death of the employee, the legally married spouse has to submit Form B6 along with KYC documents.
5. VRS cases: The provision of 25 years of service will be applicable on taking voluntary retirement (VRS). This means that such employees will have to wait till the age of 60 years.
How to apply
The nomination and claim forms for all categories will be available online on the Protein CRA website (https://npscra.nsdl.co.in). Employees will also have the option to submit the form physically.
These employees will not be included
According to the notification, UPS or assured payment option will not be available in case of removal or dismissal of the employee from service or resignation.
No change later
The notification clarifies that employees will get the option to choose UPS under NPS. Or continue NPS without UPS option. Once the option is chosen, it cannot be changed.
Key conditions of UPS
1. To get pension through UPS, it is necessary to have at least 10 years of service.
2. On the lines of NPS, employees will have to contribute 10 percent of their basic salary here as well.
3. The government will contribute 18.5 percent. That is, the total contribution of the employee and the government in this scheme will be 28.5 percent.
4. A minimum guaranteed pension of Rs 10,000 per month will be given in this scheme.
5. If the employee has served for 25 years, then 50 percent of the average basic salary of 12 months of his last working year will be given as pension.
6. If the service period is between 10 to 25 years, then the pension amount will be decided on the basis of proportional allocation.
7. In case of death, 60 percent of the amount will be given to the family as family pension.
NPS
1. No guaranteed pension amount, it depends on investment plans
2. On retirement, one has to buy an annuity plan from 40 pension funds
3. The total contribution of both is only 24%
4. Gratuity is not given in NPS
5. It depends on the investment plan
UPS
1. The government will give a minimum guaranteed pension of Rs 10,000
2. The pension will be 50% of the average basic salary of the last 12 months
3. The total contribution of the government and the employee will be 28.5%
4. Gratuity will be given on retirement
5. 60% family pension will be given
