Nps vs ups: Now there are just a few days left to end the deadline for choosing Unified Pension Scheme (UPS). Government employees who are currently in the National Pension System (NPS) and want pension fixed after retirement will have to switch to UPS by 30 September.
The Central Government issued the UPS notification on 24 January 2025. After this, many important changes were made continuously from June, so that it could become more attractive to the employees. Now the deadline is close, so know about the eight major changes in UPS since June.
Chance to return to NPS
The government has arranged that if an employee comes in the UPS and later it does not find this system right, then it can once again go back to NPS. This facility will be provided only once and will not get a chance again throughout the service period. This change gives employees flexibility to keep the option open.
Security on death or disability during service
If an employee dies during a job or is declared disabled or invalid, his family will be given financial security. In this situation, benefits will be available according to CCS (Pension) rules or PFRDA (applied under NPS) rules. This will make the employees confident that their family will be taken care of.
Benefits in pending cases
If the departmental or judicial proceedings are pending at the time of retirement of an employee, he will still get the benefits of UPS. Earlier, in such a situation, benefits were stopped, but now this rule has been changed in favor of the employee. This will help the employee to avoid uncertainty.
Relief in tax
Under the Income Tax Act, 2025, UPS subscribers have been given special tax exemption. The most important change is that the lump sum amount received at the time of retirement has been given a complete discount from tax. This means that along with the pension benefits, the tax burden will also be very low.
Advantage of gratuity
In UPS, employees will now get the benefit of both retirement gratuity and death gratuity. This means that the family will be able to get a lump sum amount if the service ends or dies. This change further strengthens the benefits existing and gives the employee a sense of protection.
Pension on volunteer retirement
It has been arranged in the UPS that if an employee takes voluntary retirement after completing 20 years of qualifying service, then he will get a fixed pension according to the ratio. This change is relief for employees who want to quit the job early. This will give them the confidence of income even after retirement.
PSU or also valid in autonomous body
Even if an employee gets absorbed in a public sector company (PSU) or autonomous body during his service period, he will still get the benefit of UPS. This means that the benefits related to pension will not end even after changing the job. This rule makes UPS more flexible.
Deadline increased
The government also extended the initial deadline for choosing UPS. Now this is 30 September. Not only this, employees who have joined government service between 1 April 2025 to 31 August 2025 can also now switch to UPS. This change has also given new employees a chance to take advantage of the scheme.
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