What will happen to NPS holders, how much will be the government’s contribution in the new scheme? Answer to every question

2024-08-26 14:02:16
New Delhi: The Modi government has taken a big decision for the central government employees on Saturday. The government has approved the Unified Pension Scheme (UPS). Under this scheme, central employees will be guaranteed a monthly pension of Rs 10,000 after a minimum of 10 years of service. Prime Minister Modi has said that UPS ensures respect and financial security for government employees. This scheme reflects the government’s commitment to their welfare and secure future. After the announcement of the scheme, people have many questions in their mind. For example, what will happen to NPS subscribers? Who is eligible for the scheme? How much will the government contribute in the new scheme? Let us know the answers to all such questions here.

Who is eligible for Unified Pension Scheme?
The new scheme will come into effect from April 1, 2025. All those people are eligible for this who are retiring by March 31, 2025 or are going to retire with the outstanding amount. Information and Broadcasting Minister Ashwini Vaishnav has said that 23 lakh government employees will benefit from this scheme.

Can NPS members avail UPS benefits?
Under the Unified Pension Scheme, employees will have the option to choose between the existing New Pension Scheme and UPS.

How much pension will be received in the Unified Pension Scheme?
This new scheme includes many attractive benefits. First of all, it guarantees a minimum pension. If you have completed 10 years of service, you will get a pension of at least Rs 10,000 every month. You will get 50% of your average salary in the last 12 months before retirement as pension. This will be applicable on completion of 25 years of service. If your service is less than 25 years, then you will get pension according to the reduced period. But, for this you will have to complete at least 10 years of service.

Is there a provision for family pension in the Unified Pension Scheme?
The scheme provides the benefit of assured family pension. If an employee dies, his family will get 60% of the pension.

Is there a provision for dearness allowance in the Unified Pension Scheme?
There is also a provision for dearness allowance in the new scheme. This means that the value of the employee’s pension will not decrease over time. The employee’s pension will keep increasing according to inflation.

What is the contribution of employees and government in UPS?
Under the Unified Pension Scheme, the contribution of employees will remain 10 percent. On the other hand, the contribution of the Center will be re-evaluated every 3 years. The government will spend Rs 800 crore to pay the outstanding amount. Its estimated initial annual cost will be Rs 6250 crore. UPS will be implemented from April 1, 2025. It will also be implemented with retrospective effect on government employees who retired after 2004.

Will the state employees get the benefit of the Unified Pension Scheme?
Unified Pension Scheme (UPS) is a hybrid of Old Pension Scheme (OPS) and National Pension Scheme (NPS). The aim of UPS is to provide better pension benefits to the employees. At present, the focus of the central government is on implementing UPS on central employees. Pension schemes are a subject of state governments. Therefore, state governments are free to implement their own pension schemes.