New Delhi: The Unified Pension Scheme (UPS) is set to be implemented from 1 April 2025. The government is offering the pension scheme as an option for central employees under the National Pension System (NPS). The aim is to ensure that employees covered under NPS can get a fixed pension after retirement. The government will also create a fund for UPS, in which both the employees and the central government will deposit some money regularly. This contribution is invested at a fixed time, due to which the employee will get pension every month after retirement.
Notably, the rules state that the central government employees who are already registered under NPS can apply for UPS. New employees who joined service after April 1, 2025 can choose either UPS or NPS. Employees who retired before March 31, 2025, and those employees whose spouses are getting pension after their death, can also opt for UPS. Once UPS is selected, it cannot be changed.
How to apply for UPS?
Existing employees, who want to join UPS, will have to fill Form A2.
New employees recruited after April 1, 2025, can choose UPS by filling Form A1 as soon as they join.
Employees who retired before March 31, 2025, if they want to join UPS, they will have to fill Form B1.
Spouses of deceased employees can apply for UPS through Form B2.
UPS Eligibility criteria for central govt employees
On retirement, if the employee has completed at least 10 years of service.
If retirement has taken place under FR 56(j) (which is not considered a punishment under Central Civil Services rules), then UPS will be applicable from the same day.
On voluntary retirement, if the employee has completed 25 years of service, then the benefit of UPS will be available from the day on which his retirement was to take place in the normal manner.
UPS: What will be contribution of employees and govt
Employee Contribution – 10% of (Basic Pay + Dearness Allowance)
Government contribution – 10% of (Basic Pay + Dearness Allowance)
Apart from this, the government will contribute an additional 8.5% to the employees selected in UPS to ensure their assured pension.
The Unified Pension Scheme (UPS) for Indian central government employees will be launched on April 1, 2025, offering a fixed pension after retirement. Current NPS members can apply (Form A2), while new employees can choose UPS or NPS (Form A1). Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
