Unified pension scheme: The Central Government has notified Unified Pension Scheme (UPS) as an option under the National Pension Scheme (NPS). Now central government employees can choose their favorite pension scheme from NPS or UPS. The UPS has been announced after the long -standing demand of the employees, demanding the restoration of the old pension scheme. After retirement under OPS, 50% of the last salary was given as pension.
Will everyone get 50% pension under UPS?
According to the UPS notification issued on 24 January 2025, employees will have to fulfill several conditions and rules for taking 50% pension of the final salary after retirement. Under the UPS, a formula has been fixed for calculation of the right pension.
Pension = (P/2) X (Q/300) X (IC/BC)
P: Average of the average basic pay of last 12 months
Q: Total months spent in jobs (it will be considered 300 if it is more than 300)
IC: Personal Corpus (Retirement Fund)
BC: Benchmark Corpus
Which employees will get 50 percent pension
According to experts, only the employees whose salary salary hike starts on 1 January and retires on 31 December. Or receive salary hike on 1 July and the service ends on June 30, they will get 50% of their final salary as pension. Apart from this, they will also have to fulfill certain conditions.
Employees will have to complete 25 years of their service.
His personal corpus should be equal to the government’s fixed benchmark corpus (BC).
The average salary of the last 12 months should be equal to their final salary.
Calculation of pension under UPS will be done on the basis of average basic pay of the last 12 months. It was decided on the basis of the final salary in OPS. This difference can affect their pension amount for many employees.
Provision of vRS
According to the notification, after the retirement of at least 25 years, the pension fixed after retirement will start from the date on which it has retired. For example, if an employee starts a job at the age of 21 and takes VRS at the age of 46 after 25 years of service, then he will get a fixed pension after 60 years of age.
Where will you get UPS information?
Complete information and notifications related to UPS can be downloaded in PDF format. The objective of this scheme is to give better pension options to employees. But it is mandatory to fulfill under the conditions fixed.
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