What is UPS: The central government on Saturday approved a Unified Pension Scheme (UPS) for government employees. About 23 lakh central government employees will benefit from this. If it is implemented in the states as well, then 90 lakh employees will benefit from it. The aim of the scheme is to provide financial security to government employees after retirement.
Under UPS, employees who work for 25 years or more will get half the pension of the average salary of the last 12 months every month after retirement. If someone works for less than 25 years, then he will be given pension accordingly. But under this it is necessary to work for at least 10 years.
Under UPS, the employee and his family will also get the benefit of family pension. If a government employee dies during the job or after retirement, then his wife / husband will get pension. This pension will be 60% of the money that the employee was getting.
Under UPS, the government has also guaranteed an assured minimum pension. Employees who have served for at least 10 years will get a pension of at least Rs 10,000 every month on retirement. If your job is for 15 years, then this amount of pension will increase in the same ratio.
Under UPS, you will also get the benefit of inflation indexation. Like the old pension scheme, in this, the pension and family pension of retired employees will increase according to inflation.
Just as the government gives the benefit of dearness allowance to those who are currently employed when inflation increases. Similarly, if people retire under the Unified Pension Scheme (UPS), they will also get dearness allowance. That is, if things become expensive, then their pension will also increase accordingly.
Also Read- Unified pension scheme: These 5 things about UPS make it special from NPS, check here
When an employee retires, he will be given the benefit of some lump sum money by the government. Employees will get similar benefits under OPS as well. The lump sum money will not affect the employee’s pension.
Under NPS, the employee used to contribute 10 percent of the basic salary and the government used to contribute 14 percent. But now under UPS, the government’s contribution has increased to 18.5 percent.
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