Ups Pension Scheme Retirement, Calculator, Scheme for Govt Employees Details pdf

Key Points About Ups Pension Scheme Retirement

1. By March 31, 2025, beneficiaries who joined NPS after 2004 and have retired or are about to retire will get the benefit.
2. On August 24, the Unified Pension Scheme (UPS) was authorized by the government.
   will be put into effect on April 1, 2025.
3. After ten years of service, a minimum pension of Rs 10,000 per month will be guaranteed.
4. Any Indian national can voluntarily join the NPS at any age between 18 and 70.​
5. The government contributes 14% of NPS, with the employee contributing 10% of their base pay.

Ups Pension Scheme Retirement, Calculator,  Scheme for Govt Employees Details pdf Check Online.

unified pension Scheme (Hindi) portal : what is ups scheme :

The government on August 24 approved the Unified Pension Scheme (UPS), which will implemented from April 1, 2025. The scheme promises a pension of 50 per cent of salary on retirement after 25 years of service. Here’s all you need to know about the new pension scheme and how different it is from the old government job pension.The answer is yes, a minimum pension of Rs 10,000 per month will ensured after at least 10 years of service. Adding the dearness allowances, this amount will around 15 thousand rupees as of today.

In UPS (Unified Pension Scheme), employees will get a pension of 50% of the basic salary. Retiring in more than 10 years and less than 25 years will get the benefit proportionately. The employee’s contribution will 10% and the government’s contribution 18.5%. Unlike NPS, there will no market-linked investment. There will a provision of DR like OPS. Employees with APS can also join.

At a press briefing, Union Minister Ashwini Vaishnay said that the Unified Pension Scheme was suggested after a review of global initiatives and substantial stakeholder participation. The cabinet then gave their blessing. Ashwini Vaishnay claims that government employees are allowed to select whichever NPS and UPS plan they desire. In such a case, employees will qualified to join any of the two pension schemes.

What was the old pension scheme ?

In OPS (Old Pension Scheme), the employee used to get 50% of the last basic salary as pension. There was no employee contribution. Only government employees were included in the scheme. There was a provision of Dearness Relief (DR), that is, every 6 months the pension increased according to inflation. Employees were entitled to full pension on completion of 20 years of service.

Benefit Of unified pension Scheme (Hindi) portal :

1. Employees who have joined NPS after 2004, have retired or are about to retire by March 31, 2025 will get the benefit.
2. The government will pay the arrears with interest. Interest will paid at the same rate as PPF.
3. It includes the inflation index. As inflation rises, so will inflation relief (DR).
4. The central government has said that the state governments can implement UPS for the incoming employees.
5. Scope: 2.3 million employees of the central government will benefit from this system, having the option to continue with the National Pension system (NPS) or transfer to UPS. The program might possibly cover up to 9 million employees if state governments approve it.
6. Increased Government Contribution: From 14% to 18.5% of employees’ base pay, the federal government will contribute more. The aforementioned modification implies that workers won’t have any extra workload.

Tax benefits in UPS yet to announced :

1. Apart from this, one can claim an additional deduction of ₹50,000 under Section 80 CCD (1B) over and above the limit of ₹1.5 lakh under Section 80 CCE. Tax benefits under UPS are yet to announced.
2. UPS is only for government employees who have opted for NPS, while private employees can also opt for NPS if their employer has adopted the contribution.
3. Any Indian citizen between the age of 18 to 70 years can voluntarily enroll in NPS.​

Pension received on the basis of investment in NPS :

The pension was received on the basis of investment in NPS. All government and private employees. The government employee’s contribution is 10% and the government contributes 14%. NPS is an investment in the market, so there are market benefits involved. At the time of retirement, 60% of the total deposit can withdrawn in one lump sum. The remaining 40% is fixed as pension.

How to calculate UPS ( unified pension Scheme ) :

1. The average of the basic salary will deducted in the 12 months before the day the employee retires.
2. 50% of the amount will given as pension.
3. 50% on completion of 25 years of employment.
4. On retirement after 10 years of service, a pension of Rs 10,000 will given.
5. The government will review it every three years.
6. On the death of the employee, the spouse will get 60% of the pension.
7. It will calculated from the basic salary of the last month of death.

Difference between the NPS (Old) and UPS (New) schemes :

1. Pension is guaranteed under UPS. Those who have opted for NPS will allowed to switch to UPS from next year.
2. On the other hand, NPS is a market-linked scheme in which your contribution is fixed but the return depends on the market. Since the money in NPS is invested in the market, the pension amount is not fixed and keeps changing according to the market fluctuations.

Government’s contribution to pension increased :

1. Under NPS, the employee contributes 10 per cent of his basic salary, while the government contributes 14 per cent.
2. The government’s contribution to UPS has increased to 18.5 per cent, while employees will continue to contribute 10 per cent of their basic salary and dearness allowance.
3. Employees contributing to NPS are eligible for a tax deduction of up to 10 per cent of their salary (basic + dearness allowance) under Section 80 CCD (1), which is within the overall limit of ₹1.5 lakh under Section 80 CCE.

Five pillars of UPS, the scheme will implemented from April 1, 2025 :

1.  50 per cent pension

You will get a guaranteed pension if you adopt UPS. The amount will 50 per cent of the average basic salary for the 12 months preceding retirement.
This amount will available only for 25 years of service. Pension will given in proportion to less than 25 years and more than 10 years of service

2. Family pension 
The family will get 60 per cent of the total pension amount before the death of any employee.

3. The minimum pension 
A minimum pension of Rs 10,000 per month will ensured after at least 10 years of service. Adding the dearness allowances, this amount will around 15 thousand rupees as of today.

4. Indexation with inflation rate

All the three types of pensions i. e. assured pension, family pension and minimum pension will get inflation indexation on the basis of dearness relief i. e. DR.

5. Additional one-time payment of gratuity on retirement
A lump sum payment of 10 per cent of the salary plus DA will made for six months of service. That is, if someone has 30 years of service, he will get a one-time payment (emolument) on the basis of six months of service.

Implementation of UPS ( unified pension Scheme ) :

1. UPS to given effect from 1.4.2025
2. • Support mechanism and necessary legal, regulatory and accounting changes will readied
3. UPS is implemented by the Central Government
   • Benefiting ~23 lakh Central Government employees
4. The same architecture has designed for adoption by State Governments
   • If also adopted by State Governments, can benefit over 90 lakh Government employees who are presently on NPS