Nps vs ups: There is big news for those central government employees. Central employees who are under the National Pension System (NPS) and want pension fixed after retirement. They have time to enter Unified Pension Scheme (UPS) till 30 June 2025. If you want to take advantage of this new pension scheme, then apply before 30 June 2025. After this, your name will remain in NPS itself. What is the difference between UPS and NPS, who can apply in UPS. Know the complete details.
What is the benefit of UPS?
The unified pension scheme is like a old pension scheme in a way, in which a fixed amount is received every month after retirement. There are many benefits under UPS.
Fixed monthly pension:50% of the average basic salary of 12 months will be available as pension, provided 25 years of service is completed.
Minimum pension guarantee: If the employee has done at least 10 years of service, then he will get a pension of at least Rs 10,000 every month.
Family Pension: After the death of the employee, his wife/husband will continue to get 60% of the pension.
Inflation Relief (DA): Like the government on the pension received under UPS, DA/DR (inflation relief) will also be applicable.
Lampasam Benefit: 10% of the salary on every 6 months service will be given on a lump sum retirement.
How to choose UPS? Know the way online
The government has also started the service of shifting in UPS online, so that eligible employees can make changes by themselves. For this, you have to go to the E-NPS portal and follow these steps.
Open the portal and go to the Unified Pension Scheme section.
Enter Pran and date of birth, fill the captcha.
Do OTP Verification (will come on mobile/email).
Fill the declaration form that you consider UPS as the last option.
E-sign (from Aadhaar or Vid).
Download Acknowledgment.
For offline option, download Form A2 and submit it to your department’s nodal office.
NPS vs UPS: What is the difference?
In NPS, the share of your salary is invested in the market (shares, debates etc.) and pension is based on this return. There is no fixed monthly pension here.
The UPS provides fixed and guaranteed pension after retirement, which is based on the basic salary of the employee.
Which is better for whom?
If you are still 15-20 years left in your retirement, you understand investment and are willing to take risks in the stock market, then NPS can be more beneficial for you. But if you want a stable and fixed income after retirement, then UPS is a better option.
Can both plans take together?
No, the same employee cannot take advantage of both schemes. Choosing UPS will be a final and unilateral decision. Once you choose UPS, it cannot be returned to NPS.
Last date 30 June 2025
If you are in service till 1 April 2025 and are in NPS, you will get the option to choose UPS by 30 June 2025. This decision will directly affect your financial situation after retirement, so decide carefully.
Bank Holidays: Banks will be closed for 3 days this week, know the full list of banks holidays