Unified Pension Scheme: A new pension scheme for central employees is being launched by the Government of India, which is being launched by the Government of India. Unified Pension Scheme (UPS) Is being said The scheme will be applicable from 1 April 2025, and it will get the benefit to employees who have retired under NPS (National Pension Scheme) or are retiring by 31 March 2025.
Under UPS, employees will now receive a sure pension, which will be 50% of their last 12 months average basic salary. Under this scheme, the method of getting a pension to government employees will be quite different from NPS. Let us know what is the difference between Unified Pension Scheme and NPS, and what kind of benefits will be given to employees under UPS.
Benefits under Unified Pension Scheme (UPS)
Unified Pension Scheme (UPS) There is an excellent option for employees who want to secure and ensure their future. Under UPS, employees will receive a fixed pension, which will be 50% of their last 12 months average basic salary. In addition, some important facilities are provided to employees in UPS, such as a minimum pension of Rs 10,000, even if they have served less than 25 years.
Under this scheme, employees will have to stay in government service for at least 25 years to get pension. If an employee is killed by the first service, then his family will get 60% of the pension. Additionally, employees serving for 10 years under UPS will be given pension at least Rs 10,000 per month. If the service of an employee is less than 25 years and more than 10 years, then the amount of his pension will be determined on a proportional basis.
Under the UPS, some more important benefits are also available, such as pension as well as inflation index, which are determined on the basis of various indexes such as AICPE-IW.
Difference between NPS (National Pension Scheme) and UPS
NPS (National Pension Scheme) There is a contributory scheme, which means that employees have to contribute to their pension. Under NPS, employees have to contribute 10% of their basic salary, while the state government contributes only 14%. At the time of retirement, the employee gets 60% of his accumulated funds, and the remaining 40% is used as pension.
NPS does not guarantee any fixed pension, as it is completely based on the stock market. This means that the amount received at the time of retirement depends on the conditions of the stock market. There is no provision for dearness allowance in NPS, and the amount received on retirement is also taxed.
There itself, Unified Pension Scheme (UPS) Under, employees get the benefit of a fixed pension, which is 50% of their last 12 months average basic salary. The UPS guarantees dearness allowance and pension, and it is a stable plan, giving employees a sure and stable pension.
Comparison of UPS and NPS
The biggest difference between Unified Pension Scheme and NPS is that UPS provides a sure pension to employees, while the NPS is based on the stock market and has no pension guarantee. In UPS, employees get sure pension after 25 years of service, while employees in NPS receive pension with their contribution. The UPS provides dearness allowances and other benefits, while there is no system in NPS.
Under the UPS scheme, employees get a certain amount, which works for them throughout their lives. At the same time, under the NPS, the employee has the effect of the stock market on the amount received at the time of retirement, which leads to fluctuations.
Who will get the benefit of Unified Pension Scheme?
Unified Pension Scheme The benefit of those employees who will be benefited before 1 April 2025 NPS Are retired or retiring. Employees will be given the option to select this scheme, and they can choose one of NPS or UPS. The benefit of this scheme will be given to those employees who have registered under NPS.
In addition, the UPS provides benefits of both Old Pension Scheme (OPS) and NPS. OPS was abolished in 2004, and NPS has been implemented since then. To get pension in UPS, employees will have to serve 25 years and along with other conditions will have to be fulfilled.
Kanklujan
Unified Pension Scheme (UPS) There is an important initiative, which is being implemented by the central government to increase the pension security of employees. Under the UPS, employees will get a sure pension, which is different from NPS, as the NPS is completely based on the stock market and does not guarantee pension.
Under UPS, employees get better benefits, such as dearness allowance, family pension, and sure minimum pension, which protects the future of employees. To take advantage of this scheme, employees have to select UPS and ensure that they meet all its eligibility criteria.
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