UPS Pension Yojana: The central government led by Prime Minister Narendra Modi on Monday approved the Unified Pension Scheme for central employees. According to Union Minister Ashwini Vaishnav, it will affect 23 lakh government employees.
The government wants to provide financial security to government employees and their families through the new pension scheme. Let us understand in five points what the UPS Pension Scheme is and what benefits the employees will get from it.
Pension will be available every month after retirement in UPS.
The Unified Pension Scheme will guarantee a fixed pension to employees working for at least 10 years. If an employee has completed 25 years of service, he will get half, i.e., 50 percent, of the average basic salary of the 12 months before retirement as a fixed UPS pension.
The Unified Pension Scheme will become the support of employees in old age.
In this Unified Pension Scheme, if an employee dies, his dependents will get a guarantee of family pension. This will be 60 percent of the last pension received by the employee. This means that if an employee was getting a UPS pension of Rs 25,000, then after death the dependent will get Rs 15,000 per month.
Pension will be available every month after retirement in UPS.
Under the UPS Pension Scheme, all those employees who have completed at least 10 years of service will get a minimum pension guarantee. They will be guaranteed a minimum pension of Rs 10,000 every month after retirement. This unified pension scheme will especially benefit those employees whose service period is not much left.
Central employees will get a lump sum payment along with a gratuity on retirement! For every six-month service period of the employee, 10 percent of his last monthly salary (sum of basic salary and dearness allowance received at the time of retirement) will be paid. This will not affect the pension amount.
Features of the Unified Pension Scheme
Pension amount: It will be 50 percent of the average basic salary received in the last 12 months.
Minimum service: It is mandatory to work for at least 25 years in the UPS Pension Scheme. Pension based on calculation for service period less than 25 years with a minimum of 10 years of service.
Family pension is 60 percent of the pension immediately before the death of the employee.
After a minimum of 10 years of service, Rs 10,000 per month will be given on retirement. Dearness relief will be given on pension, family pension, and minimum pension.
A lump sum payment will be given in addition to gratuity on retirement.
Pension will be given as per salary in the Integrated Pension Scheme.
Under the UPS Pension Scheme, to get 50% of the basic salary as a pension, the beneficiary has to work for a period of at least 25 years. As per UPS pension calculation, pension will be given by adding 50% of the basic salary of the employee in the year before retirement along with dearness relief. We explain it to you with some basic salary examples in the Integrated Pension Scheme.
Employees whose basic salary is Rs 50,000 will get pension under the UPS Pension Scheme, which is 50% of their basic salary, i.e., Rs 25,000 + dearness relief. Similarly, employees with a basic salary of Rs 55,000 will get a pension of Rs 27,500 plus dearness relief. Around 23 lakh employees will benefit from this new integrated pension scheme.
