The central authorities on Monday prolonged a closing date relevant to authorities employees for exercising the optionunder the Unified Pension Scheme (UPS). The brand new closing date of September 30 extends the present deadline of June 30 by three months. In different phrases, governnent employees can have till September 30 to choose the UPS as an elective pension scheme. The pension scheme is designed to supply a complete and centralised pension system for central authorities employees.
UPS June 30 deadline prolonged by three months
Earlier, eligible central authorities staff–including the lively emplorees, retirees and spouses of deceased retirees–had unil June 30 to train this feature underneath the UPS. Now, they may have till September 30 to take action.
“In view of the representations acquired from varied stakeholders requesting an extension of the closing date, the Authorities of India has determined to increase the closing date for exercising the choice for UPS by three months i.e., upto thirtieth September 2025 for eligible present workers, previous retirees, and the legally wedded spouses of deceased previous retirees,” the Ministry of Finance stated in an announcement.
The UPS is an choice obtainable quickly underneath the Nationwide Pension System (NPS) for central authorities workers that ensures a hard and fast month-to-month pension after retirement.
The quantity of pension depends upon common contributions from the worker in addition to the federal government which are invested in a fund.
Unified Pension Scheme (UPS) | Listed here are just a few key issues to know:
Who can go for UPS?
Solely central authorities workers already lined underneath the NPS can go for the UPS choice.
How is the pension quantity calculated underneath UPS?
The complete assured month-to-month pension is 50 per cent of the common primary pay of the final 12 months earlier than retirement. The complete pension, underneath the scheme, is paid after 25 years of qualifying service.
In case of a service of lower than 25 years, a proportionate pension is paid underneath the scheme. If retirement takes place after at the least 10 years of service, a minimal pension of Rs 10,000 monthly is assured, topic to well timed and common contributions with no withdrawals.
For voluntary retirement after 25 years, the pension will begin from the date the worker would have usually retired.
Worker and central authorities contribution underneath the UPS
Below the UPS, every of the worker and the central authorities contribute 10 per cent of the fundamental pay together with the dearness allowance for the worker.