New Delhi
A new scheme for the central employee is scheduled to begin from April 1, 2025. Its name is Unified Pension Scheme (UPS). In this scheme, retired employees of the Central Government will get sure pension. What are the benefits of central employees in this scheme and how it is different from the Old Pension Scheme (OPS) and National Pension Scheme (NPS). First of all, we know the specialty of unified pension scheme.
Unified pension scheme
UPS scheme is optional for central employees. It is mainly 5 specialty. The first specialty is of sure pension. For the employee who serves 25 years, 50 percent of the average basic salary received in the last 12 months before retirement will be given. If you have served less than 10 years and less than 25 years, then the amount will also be given accordingly.
Family pension
This scheme provides for sure family pension. Just 60 percent of his pension will be given just before the employee’s death. At the same time, after the minimum 10 years of service, there is a provision of Rs 10,000 per month on retirement. Explain that employee and family pension will be associated with inflation. This means that inflation will be given on the basis of the All India Consumer Price Index (AICPE-IW).
In this scheme, employees will be given a lump sum for leaving the job in addition to gratuity. It will be counted as the tenth part of the basic salary and dearness allowance on every six -month service of the employees. This payment will not reduce the quantity of sure pension. The contribution of the employee in UPS is 10% of the basic salary and DA and the government will also contribute 18.5%.
Old Pension Scheme and NPS
In this scheme, pension was fixed to the final basic salary and 50% of dearness allowance (DA). No employee contribution was required in OPS. Because of this, tax was deprived of benefits. At the same time, NPS requires 10% contribution from the basic salary of the central government employee and 14% from the government.
Tax benefits are eligible for the government’s contribution to the scheme. They can cut 14% from both old and new tax systems under the Income Tax Act, 1961. When you become 60 years old, you can withdraw a part of the funds received from this investment as a lump sum and the balance will give you regular pension.
