The Indian government has recently introduced the Unified Pension Scheme (UPS). It offers a secure retirement income that combines the Old Pension Scheme (OPS) and the National Pension System (NPS). This scheme increases the government contributions and provides a sum assured pension benefits.
Recently the Unified Pension Scheme (UPS) has been launched by the Indian government to secure the retirement of young government employees by their pension benefits which was highly demanded.
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Unified Pension Scheme
The UPS scheme is designed to maintain the income stability after retirement and secure the financial aspects of their families. It is the integration of some key features from both the Old Pension Scheme (OPS) and the National Pension System (NPS). It also enhances the government contribution percentage and provides an assured pension.
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It is applicable for the central government employees and aims to provide them a secured retirement income. This scheme is a mixture of both the Old Pension Scheme (OPS) and the National Pension System (NPS).
Also Read: Is Unified Pension scheme for PSU Employees?
Key Features of UPS
Following are some important features of this unified pension scheme:
1. The UPS has been launched to address the concern of young government employees that they’ll receive less than 50% of their salary as a pension.
2. The UPS has been launched to attract more employees by providing extra financial stability and securing life after retirement. It will provide additional family pension, assured pension to the employee with less service tenure.
3. Previously the government used to contribute 14% of the basic pay to the pension scheme. But now this percentage will be 18.5% of the basic pay which is up from the previous. Whereas the employee’s contribution is unchanged which is 10% of the basic pay. This is to assure the 50% pension.
4. As per the reports, this will cost approximately Rs 6,250 crore to the government in the first year. And after that Rs 800 crore extra to cover the employees who have retired since the NPS was introduced in the year 2004.
5. The UPS is to attract talented employees towards government jobs as the retirement pension is the foremost attraction for government jobs that stabilizes life after retirement, otherwise private sectors pay for good to the deserved candidates.
6. As of now UPS is for the central government’s employees. However, the state governments are also showing their interest in this.
The Unified Pension Scheme offers a more secured retirement to India Government Employees. A good initiative towards the benefit of government employees.
