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Unified Pension Scheme: The Modi government at the Center has announced the Unified Pension Scheme (OPS). This scheme will be implemented from April 1, 2025. Under this scheme, government employees will get 50 percent of their basic salary as pension.
Under UPS, the government has guaranteed to give employees 50 percent of their basic salary as pension. In such a situation, the question is how this 50 percent will be calculated, who can get the benefit of this scheme, can the beneficiaries of OPS get its benefit. We will try to answer all these questions through this article.
Before you retire, your basic salary for the last 12 months will be averaged and you will get 50 percent of it as pension. However, there is a condition that your working age should be at least 25 years.
If your service period is less than 25 years, then your pension will be reduced by that much. But the government has taken special care that if a person works for 10 years, then he should get a monthly pension of at least Rs 10,000.
UPS cannot be compared with OPS. Under the old pension scheme, the entire contribution was given by the government. Under NPS, both the government and the employee contribute. But under UPS, the government has increased its contribution, while the employee's contribution has not been increased. The employee will have to contribute only 10 percent. While the government will contribute 18.5 percent.
The government contribution to UPS will be reviewed every three years. The review will look at whether there is a need to increase the contribution by 18.5 percent. No reduction will be considered in the review. It will also be ensured that the employee's contribution does not increase during the review.
The question arises that those who have opted for NPS and are working, can they opt for UPS. So the answer is, yes, they can opt for UPS. Giving relief to such people, the government has given the option that if you have opted for NPS then you can opt for UPS.
Can employees who retired under NPS after 2004 also take advantage of this scheme? Giving relief to these people, the government has said that those who have retired under NPS after 2004 and want to opt for UPS can opt for it. The dues of these employees will be paid by the government. The government will also pay interest on the remaining amount. Along with this, interest will also be available on PPF.
UPS also provides family pension. If the pensioner dies and has any dependents, the family will be given family pension. 60 percent of the last pension drawn by the pensioner will be given to the family as family pension.
If you are taking VRS before the age of 60, then your pension will start from the age of 60. When you retire, there will be no change in your gratuity and you will be given one-tenth of your monthly salary. This will not affect your pension.
The special thing about UPS is that it also includes inflation indexation. Provision of Dearness Relief i.e. DR has been made for the employees. The government believes that about Rs. 800 crore will be spent on the remaining amount. While the implementation of UPS will cost Rs 6250 crore in the first year.
UPS cannot be compared to OPS. There is a lot of difference between the two so it would be wrong to compare the two. However, OPS is definitely comparable to NPS. UPS is far better and more beneficial than OPS.