The Universal Pension System (UPS), launched by the Government of India in 2023, is a new pension scheme, which was brought to employees with the objective of giving more secure and assured pension. Now PFRDA has made changes in its rules, which will be effective from 1 April 2025. Let’s know what will be the impact on the new UPS rules and their government employees.
Fixed pension like ops
There has been a major change in the rules of the Universal Pension System (UPS), which will be effective from 1 April 2025. The UPS works on the contribution based system like the National Pension System (NPS), but it also provides definite pension like the Old Pension System (OPS). The scheme was made to provide financial security to government employees after retirement.
Announcement of new rules of UPS
The Pension Fund Regulatory and Development Authority (PFRDA) has recently announced new rules to make UPS effective. Under these rules, more transparent and beneficial pension provisions have been made for government employees. The purpose of these amendments is to provide more economic stability to employees and ensure their financial security after retirement.
These employees can enroll
It is divided into three categories to make the enrollment process simple and effective for UPS:
- Current Employees: Employees who are included in NPS by 1 April 2025 can enroll for UPS.
- New Employees: Employees appointed in the Central Government after 1 April 2025 can also avail this scheme.
- Retired Employees: Till 31 March 2025, he was included in NPS and retired employees or retired employees can also enroll in UPS.
Features of UPS
UPS is a hybrid pension system, which combines the benefits of NPS and OPS. In this, employees will be given 50% of the average basic salary of the last 12 months at the time of their retirement. Additionally, employees who have been in service for at least 10 years will be given a minimum monthly pension of Rs 10,000.
Benefits of UPS
- Several additional benefits will be provided to employees under UPS, which make it different from NPS:
- Provision of a fixed pension like ops
- Financial security for retired employees
- Rs 10,000 monthly pension for employees who have completed minimum 10 years service
- Transparent and more sure pension system
