The Government of India has announced Unified Pension Scheme (UPS), which will be applicable from 1 April 2025. This scheme is for central government employees, which fall under the National Pension System (NPS). The purpose of UPS is to provide financial security to employees after retirement. In this scheme, a safe and permanent pension system has been created by combining the benefits of Old Pension Scheme (OPS) and NPS.
Under UPS, employees will get a guaranteed pension, which will be 50% of their last 12 months average basic salary. Apart from this, they will also be given a minimum pension guarantee, which will be Rs 10,000 per month. The scheme is also open to employees who have retired from NPS before 1 April 2025.
Integrated Pension Scheme: Major features
Following are the main features of UPS:
| Speciality | Description |
| Eligibility | Central government employees who fall under NPS. |
| Contribution | The employee will have to contribute 10% of his basic salary and DA. |
| Government contribution | The government will contribute 8.5% in addition to the contribution of the employee. |
| Guaranteed pension | Guarantee of 50% average basic salary after retirement. |
| Minimum pension | A guarantee of Rs 10,000 per month after at least 10 years of service. |
| Family pension | After the death of the employee, the family will get 60% pension. |
| Inflation index | Pension will be adjusted according to inflation. |
Benefits of Unified Pension Scheme
There are many benefits of UPS that will attract employees. First, it offers a guaranteed pension, which provides financial security to employees after retirement. Apart from this, minimum pension is also guaranteed, which acts as a safety trap for low -pay employees.
Contribution and benefits to UPS
In UPS, employees have to contribute their basic salary and 10% of DA. The government also contributes 8.5% in addition to the contribution of the employee. The scheme adjusts pension according to the inflation index, which keeps the value of pension.
Eligibility Criteria for UPS
There are some eligibility criteria to join UPS:
- Current Employees: Those who are employed under NPS on 1 April 2025.
- New Employees: Those who will join the job or after 1 April 2025, they have to choose the option within 30 days.
- Retired Employees: Those who have retired from NPS before 31 March 2025.
- Family of the deceased employee: Those who have died and they could not choose the option of UPS.
Unified pension scheme compared to NPS
There are some main differences between UPS and National Pension System (NPS):
- Guaranteed Pension: Guaranteed Pension is guaranteed in UPS, while NPS depends on market performance.
- Government contribution: Government’s contribution to UPS is higher than NPS.
- Minimum pension: The minimum pension is guaranteed in UPS, which is not in NPS.
Application process for UPS
To apply for UPS, employees have to use the online portal. The application form and claim form will be available from 1 April 2025. Employees have to keep in mind that once the option of UPS is chosen, they cannot return to NPS.
Some important things before deciding for unified pension scheme
Before joining UPS, employees should consider some important things:
- Guaranteed pension is guaranteed, but it demands more contribution than NPS.
- The minimum pension is guaranteed, which is beneficial for employees with low salary.
- Family is a pension system, which provides financial security to the family after the employee’s death.
Future possibilities for UPS
The future possibilities of UPS are very good. This scheme is not only for central government employees, but can also adopt state governments in future. This will benefit millions of employees across the country and they will get financial security after retirement.
Terms and conditions of Unified Pension Scheme
The terms and conditions of UPS are quite clear:
- Unintengability of decisions: Once option of UPS, employees cannot return to NPS.
- Additional benefits: No additional profit or policy change can be claimed after joining UPS.
Application time limit for UPS
The time limit for applying for UPS is from 1 April 2025 to 30 June 2025. New employees have to choose the option within 30 days of joining the job.
Documents required for unified pension scheme
Documents required for UPS include:
- Aadhar card
- PAN card
- Appointment letter
- Pension account number
Online application process for UPS
To apply online for UPS, employees must follow the following steps:
- Login on the portal: Go to the official website of Protean Cra and login using your credentials.
- Fill the application form: Fill the application form for UPS and enter the necessary information.
- Upload the document: Upload the required document.
- Submit the application: submit the application form and take a printout of a copy.
Questions often asked for Unified Pension Scheme
Frequently asked questions about UPS include:
- Can you go back to NPS after joining UPS?
- No, Once the option of UPS can not be returned to NPS.
- How much will you contribute to UPS?
- Employees have to contribute 10% of their basic salary and DA.
- What is the minimum pension under UPS?
- The minimum pension is Rs 10,000 per month, which is available after at least 10 years of service.
conclusion
The Unified Pension Scheme is an important step that will provide financial security to the central government employees after retirement. The scheme creates a safe and permanent pension system by combining the benefits of NPS and OPS. Employees should carefully read all the terms and conditions before joining the scheme.
Disclaimer: This article is for general information and should not be taken as any specific financial advice. Unified Pension Scheme is a real plan declared by the Government of India. Its terms and conditions can change from time to time, so it is important to stay connected with official sources for updated information.
