Ups: The Central Government has launched a new option Unified Pension Scheme (UPS) for central employees under the National Pension System (NPS). The scheme has been implemented from 1 April 2025. In this, pension will be guaranteed to the employee as per certain conditions. Learn here how much money will be deducted from your salary every month for UPS.
How much contribution to contribute?
Under the UPS, every month the employee will have to contribute 10% of his basic salary + dearness allowance. The government will also contribute to the same amount. Apart from this, the government will contribute an estimated extra in the UPS Pool Corpus of 8.5%.
Who can take advantage of UPS?
Central employees who are in service on 1 April 2025 and fall under NPS can choose the option of this new scheme. It is voluntary, that is, employees can go to UPS if they want. Once you go to UPS, you cannot return to NPS.
What will happen to the already deposited NPS amount?
If an employee wants to move from NPS to UPS, then his deposit NPS corpus amount will be transferred to the same Pran (Pension Account). This Pran will now be connected to UPS and from there his pension facility will be released.
What is individual corpus and benchmark corpus?
Individual Corpus: This shows the total amount deposited in the PRAN of every employee connected in the UPS.
Benchmark corpus: This is a fictional value that has been decided by CRA (Central RecordKipping Agency) to see which level of an employee’s corpus amount is. This fixed investment plan is based on the net asset value (NAV).
The UPS scheme is an important step towards giving stable and safe pension to central employees. The scheme will create balance between traditional and investment -based pension to employees. UPS can be a good option for employees who want to plan income fixed for the future.
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