A significant change is coming for central government employees regarding retirement planning.
The Pension Fund Regulatory and Development Authority (PFRDA) has announced that the Unified Pension Scheme (UPS) will be implemented starting April 1, 2025.
Under this new scheme, employees will receive a guaranteed pension of 50%. Here’s everything you need to know about the UPS, including eligibility, benefits, and how to apply.
Who is Eligible for UPS?
The UPS will benefit government employees who are in service as of April 1, 2025, and are already covered by the National Pension System (NPS).
New government employees joining after this date will also be eligible. However, employees who have been dismissed, fired, or resigned voluntarily will not be eligible for the UPS.
How Does UPS Differ from NPS?
The government replaced the Old Pension Scheme (OPS) with the NPS in 2004, where pension amounts depended on market-linked returns.
In NPS, government employees’ pension funds were invested in the stock market and government bonds, with pension payouts based on the returns. The new UPS, however, guarantees a fixed minimum pension.
What Benefits Will UPS Provide?
Pension Amount: 50% of the average basic salary of the last 12 months of service.
Eligibility for Pension: Employees who have served for at least 25 years.
Contribution: Employees will contribute 10% of their Basic Salary + DA, while the government will contribute 18.5%.
Where to Get UPS Forms?
Government employees interested in joining the Unified Pension Scheme can fill out the online application form on the official Protean CRA website starting from April 1, 2025. An offline application option will also be available.
The scheme was approved by the Central Government on August 24, 2024, with the aim of providing financial security to employees post-retirement, ensuring they have a stable income.
This change is set to help employees enjoy a more secure retirement with a guaranteed pension.
