Last year, Prime Minister Narendra Modi’s government announced a new Unified Pension Scheme (UPS) for lakhs of central employees of the country. Now this scheme will be implemented across the country from the coming financial year i.e. 1 April 2025.

The objective of this pension scheme is to provide fixed pension security to government employees. This scheme has been totally created for central employees under the National Pension Scheme (NPS). Do you also want to know how much you will benefit? So let’s know.

Employees will get a pension guarantee

Under this scheme, employees who have completed 25 years of service get a pension guarantee of up to 50 percent on the average of their last 12 months’ salary. Not only this, if an employee has completed more than 10 years of service, he will also be given a pension of at least Rs 10,000 every month. Apart from this, if an employee dies, his family members will be given 60 percent of the last pension amount as pension.

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What is UPS

The government started the National Pension Scheme in the year 2004 by closing the old pension scheme. Earlier it was only for government employees, but in the year 2009, it was implemented for all citizens. Under this, now the Unified Pension Scheme (UPS) has been started. In UPS, a fixed amount is deducted from the salary of the employees and it is invested in a market-based investment scheme.

At the time of retirement, they get 60 percent of the amount as a lump sum. It is necessary to keep 40 percent investment, which they get as a pension every month. At the same time, there is no guarantee of any fixed amount as a pension on the old pension scheme and the National Pension Scheme.
How UPS works

In UPS, a fixed amount is deducted from the salary of the employees and it is invested in a market-based investment scheme. At the time of retirement, they get 60 percent of the amount as a lump sum. Whereas it is necessary to keep 40 percent of the investment, which they get in the form of pension every month.

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