New Delhi: The central government is all set to implement the Unified Pension Scheme (UPS) as an alternative to the National Pension System (NPS) from April 1, 2025. The UPS was announced on January 24, 2025. The central government employees, who are already covered under the National Pension Scheme, will be eligible to apply for the scheme. The scheme will ensure a minimum pension of Rs 10,000 every month for the employees.
In regards to UPS, the Pension Fund Regulatory and Development Authority (PFRDA) has issued new rules. In this article, we inform you of the new pension scheme and also help understand the eligibility criteria.
UPS scheme will be meant only for the central government employees who are already registered under NPS i.e. National Pension Scheme. The government employees will have the option to choose either NPS or UPS. Under this scheme, employees will be entitled to receive a fixed pension which will be 50 per cent of the average basic salary of the last 12 months.
To become eligible for the Unified Pension Scheme, a central government employee has to serve for at least 25 years. Under this scheme, employees will get a minimum pension of Rs 10,000 every month, provided they contribute 10 per cent of their basic salary and dearness allowance every month.
- Central government employees who have enrolled themselves for NPS can apply for this scheme from April 1, 2025.
- Newly recruited employees can opt for UPS within 30 days
- Family members of employees who were in NPS and have retired by March 31, 2025 can also opt for the new pension scheme.
- The employees should take note of the rule that after joining UPS then the individual will not be allowed to change his decision.
- The government employees are mandated to contribute 10 percent of their monthly pension.
- The employees who will apply for the scheme will not be eligible to get the benefits of other pension schemes. This scheme will ensure financial security and stability in pension for central employees in future.
The employees enrolled in this can withdraw 25% of their contribution after the lock-in period which is of 3 years. This withdrawal can be made a maximum of 3 times. Under normal circumstances, employees can withdraw for the purchase or construction of a residential house or flat in their own name or in joint name with their legally married spouse.
The central government’s Unified Pension Scheme (UPS), launching April 1st, 2025, offers central government employees an alternative to the NPS. UPS guarantees a minimum monthly pension of Rs 10,000 with a 10% contribution from the employee’s salary. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
