About UPS-
The scheme will be effective from April 1, 2025.
Central government employees will be able to choose between the National
Pension Scheme (NPS) and the Unified Pension Scheme (UPS). Moreover, existing
central government NPS subscribers will also have the option to switch to the
UPS.
·
Assured
Pension: 50% of the average basic pay
drawn over the last 12 months prior to superannuation for a minimum qualifying
service of 25 years
·
Proportionate for lesser service
up to a minimum of 10 years of service
·
Assured Family Pension @60% of
pension of the employee immediately before her/his demise
·
Assured Minimum Pension @10000
per month on superannuation after minimum 10 years of service
·
Inflation Indexation: On assured
pension, on assured family pension and assured minimum pension Dearness relief
based on All India Consumer Price Index for Industrial Workers (AICPI-W) as in
case of serving employees
·
Lump-sum payment at
superannuation in addition to gratuity
·
1/10th of monthly emolument (pay
+ DA) as on the date of superannuation for every completed six months of
service
·
This payment will not reduce the
quantum of assured pension
·
"PM
Modi constituted a committee under the chairmanship of Cabinet Secretary TV
Somanathan. This committee held more than 100 meetings with different
organisations and nearly all the states. There's a difference between how PM
Modi works and the oppositions works," Vaishnaw said.
About NPS-
1.
The New Pension Scheme will work
on defined contribution basis and will have two tiers – Tier I and Tier II.
2.
Tier-I is mandatory for all
Govt. servants joining Govt. service on or after 1.1.2004. In Tier I,
Govt. servants will have to make a contribution of 10% of his Basic Pay, DP and
DA which will be deducted from his salary bill every month by the PAO concerned.
The Govt. will make an equal matching contribution. Tier I contribution will be
kept in a non withdrawal Pension Tier I account.
3.
Tier II will be optional and at
the discretion of Govt. servants. Tier II contributions will be kept in a
separate account that will be withdrawal at the option of Govt. servant.
The scheme of voluntary contribution under Tier II will not be made operative
during the period of interim arrangement and therefore no recoveries will be
made from the salaries of the employees on this account.
4.
The existing provisions of
Defined Benefit Pension and GPF would not be available to new Govt. servants
joining Govt. service on or after 1.1.2004.
5.
An independent Pension Fund
Regulatory and Development and Authority (PFRDA) will regulate and develop the
pension market.
6.
As an interim arrangement till
such time the statutory PFRDA is set up and interim PFRDA has been appointed by
issuing an executive order by Ministry of Finance(DEA).
7.
It has also been decided that
Tier II will not be made operative during interim period.
8.
Till the regular Central Record
Keeping agency and Pension Fund Managers all appointed and the accumulated
balances under each individual are transferred to them, it has been decided
that such amounts rep[resenting the contributions made by the Govt. servants
will be kept in the Public Account of India . This will be a temporary
arrangements as announced by the Govt.
9.
A Govt. servant can exit at or
after the age of 60 years from Tier I of the Scheme. At exit, it would be
mandatory for him to invest 40% of pension wealth to purchase an annuity (from
an IRDA regulated Life Insurance Company), which will provide for pension for
the life time of the employee and his dependent parents/ employee. In
case of Govt. servants who leave the scheme before attaining the age of 60, the
mandatory annuitisation would be 80% of the pension wealth.
10.
Recoveries towards Tier I
contribution will start from salary of the month following the month in which
the Govt. servant has joined service. Therefore, no recovery will be
effected for the month of joining.
11.
No deductions will be made
towards GPF contribution from the Govt. servants joining the service on or
after 1.1.2004 as the GPF scheme is not applicable to them.
- It has
been decided that pending formation of a regular Central Record Keeping
Agency, Central Pension Accounting office(CPAO) will function as the
Central Record Keeping Agency for the above scheme.
Expert Recommendations-
In first look it is clearly showing that the UPS is
much safer than NPS in many aspects . Govt has tried to include many points of
old pension scheme in UPS-2025. But lets wait and watch that how govt is going
to implement it.
