Now, government employees can opt for the unified pension scheme for their retirement purposes with 5 important features.

In addition, this scheme was introduced in August 2024 and will be implemented in April 2025.

And this UPS combines both features of NPS and the Old Pension Scheme (OPS).

 

5 Important Features of the Unified Pension Scheme…

Assured Pension Under UPS…

Government employees who service at least 25 years of service will get a guaranteed pension.

In addition, under UPS, the government employees will get 50% of average basic pay as of the last 12 months of service.

Again, those government employees who have less than 25 years of service and a minimum of 10 years of service also receive pension proportionate to their years of service.

Assured Minimum Pension under UPS (for government employees with less than 25 years of service).

The government employees who have not completed 25 years of service will also get a minimum guaranteed pension under this UPS.

In addition, those who have completed a minimum of 10 years of service will get a minimum pension of Rs. 10,000 per month.

So, those who have not completed long-term service will also get some adequate financial security in their retirement life under UPS.

Assured Family Pension under UPS…

One more important feature under UPS is an assured pension to the family members.

In addition, in case of death of the pensioner, the family members will receive 60% of the pension.

Hence, UPS provides financial support to family members also under family pension provision under UPS.

Inflation Indexation Benefit under UPS…

Under this provision, the pension amount will be adjusted in line with all Indian consumer price index for industrial workers. (AICPI-IW).

In addition, this feature allows that the pension is enough to keep its purchasing power.

Moreover, this feature allows the pensioners to keep their standard of living throughout their retirement life.

Lumpsum Payment or Super Annuation…

UPS allows lumpsum payment on retirement for the retiree.

In addition, the payment is equivalent to one 10th of their last drawn monthly emoluments for every six months of service.

However, receiving this lumpsum will not have any impact on the pension corpus/amount.

Finally, retirees will also receive gratuty on retirement.

Read about the NPS Vatsalya Scheme. All you need to know…

Also read about NPS charges. All you need to know…

And read about the Lic Batchat Plus Plan—all you need to know…

Also read about the Lic Bima Bima Jyothi Plan…