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Integrated Pension Scheme for Employees: The central government has launched a new pension scheme for employees, which is similar to the National Pension Scheme (NPS). This scheme will be implemented from April 1, 2025 i.e. FY 2026. The central government has announced this scheme to provide fixed pension to government employees. Under the Unified Pension Scheme (UPS), government employees will be given a fixed pension. There is also a provision for guaranteed family pension in the event of death of the employee. Apart from this, a minimum fixed pension will also be given. However, it is very important to choose UPS and NPS, with the help of which the benefits of the scheme can be availed.
A Choice Must Be Made
To avail pension, the employee has to choose between UPS and NPS. Once you opt for UPS, you can never opt for NPS. Once you opt for NPS, you can never opt for UPS.
How much contribution do I have to make to UPS?
Under this scheme of the government, contribution has to be made from the salary just like NPS. Government employees have to contribute 10 percent under UPS, which is also provided under NPS. However, the government has increased its contribution to UPS from 14 percent to 18.5 percent. This means that employees can get a good pension after retirement.
If the basic salary is Rs. 50 thousand then how much pension will you get?
Under the Integrated Pension Scheme, the employee will be given 50 percent of the average basic salary as pension for 12 months after retirement. Which can be calculated as follows. If you are a government employee and you choose UPS instead of NPS and your average basic salary for the last 12 months is Rs. 50 thousand then under this scheme you will get Rs 25 thousand per month after retirement. However, Dearness Relief (DR) will be added separately. That is, the pension amount can increase to 35 thousand.
When an employee dies and his pension is Rs 30 thousand per month, then the monthly pension fixed under the provision of giving 60 percent of the pension to his family will be Rs 18 thousand.
What is Unified Pension Scheme (UPS)?
The Unified Pension Scheme was approved by the Cabinet on Saturday. Under the UPS, now retired employees will be given 50% of the average basic salary of 12 months as a fixed pension. However, to get this pension, employees will have to serve for at least 25 years.
If the employee dies, his family will also be given a fixed pension, which will be 60 percent of the pension received by a retired government employee. A minimum assured pension will also be provided, that is, those who have worked for only 10 years will be given a minimum pension of Rs 10,000.
23 lakh government employees benefited
Under the Integrated Pension Scheme, about 23 lakh central government employees will get benefits. If the state governments also implement this scheme, then it will be beneficial. Integrated Pension Scheme or UPS is designed to provide better financial security to government employees by guaranteeing fixed pension and family pension. Apart from this, there is also a provision to increase the pension under this scheme as inflation increases.