Ups: A big service has been started for central government employees. Employees themselves will be able to calculate how much pension they will get according to their contribution to NPS and UPS. The NPS Trust has launched the Unified Pension Scheme (UPS) calculator, which will help the employees to understand by comparing the approximate pension under the NPS i.e. National Pension System and the new UPS scheme through online. This calculator shows the staff simultaneously to the employees under both schemes when they fill some basic information. This will help them to choose the right pension option for themselves.
What is Unified Pension Scheme (UPS)?
The UPS is an optional pension scheme launched by the Central Government, in which money is available simultaneously on retirement with guaranteed monthly pension. This scheme is now available as an alternative to NPS and aims to give employees a more secure and fixed retirement benefit.
How does UPS scheme work?
Employees contribute 10% of their basic salary and DA. The government also contributes the same amount. This money is invested through the default scheme or private pension fund manager (PFM) as per the choice of the employee. If the employee’s service is more than 25 years, he will get a 50% pension of the last 12 months average basic salary. Ratio pension will be provided for service of 10 to 25 years. Those who complete the service of at least 10 years will get a minimum guaranteed pension of Rs 10,000 monthly.
Family will also get security
If the pensioner dies, his spouse will continue to get 60% pension. This determines the financial security of the family.
Payment like Swp on retirement
After retirement in the UPS scheme, the pension payment will be made like a systematic withdrawal plan of mutual funds. If the pension fund is finished and the pensioners or their spouse are alive, the government will continue the payment from a common pool.
Why is UPS calculator necessary?
This calculator allows central employees to compare the estimated pension under NPS and UPS, allowing them to choose the right scheme according to their needs. This will make retirement planning now easier and intelligent. Currently, UPS is available only to central government employees. If the state governments want, they can also apply it to their employees.