Subscribers of the Unified Pension Scheme (UPS) can now invest up to 50% of their retirement funds in equity. The Pension Fund Regulatory and Development Authority (PFRDA) notified the scheme’s regulations on March 19. Under this scheme, UPS subscribers will also have the option to choose their pension fund. The scheme will be implemented starting April 1.

Investment Options for Subscribers:

  • 100% in Government Securities
  • Subscribers can invest all their money in government securities (Scheme G).

Life Cycle-Based Options

  1. Conservative Fund (LC-25): Up to 25% of the money can be invested in shares.
  2. Moderate Fund (LC-50): Up to 50% of the money can be invested in shares.

Changing Pension Fund Options:

Subscribers can change their pension fund option once in a year. They can also change their investment option twice in a year. If there is extra money (surplus), it will go to the subscriber. If there is less money (shortfall), the subscriber must cover it.

Also Read -UPS Pension Plan: ₹10,000 Minimum Pension for Employees with 10+ Years Service

Surplus and Shortfall at Retirement:

The surplus or shortfall will be calculated on the retirement date or VRS date. If there is a shortfall, the subscriber can pay it before retirement. If not, the retirement payout will be less. Surplus money will be paid to the subscriber after the UPS pay order.

Government Contribution:

Employees with at least 10 years of service will get a minimum pension of Rs 10,000 per month. The government will contribute 18.5% of the basic salary, and employees will contribute 10%. On retirement, employees will get 50% of their basic salary as a pension, calculated from the average basic pay of the last 12 months.