Unified Pension Scheme: Central Government employees under the National Pension System (NPS) will soon benefit from the Unified Pension Scheme (UPS). The scheme has been introduced by the Central government so that the employees receive an assured payout after their retirement. In the notification regarding UPS by the Department of Financial Services, it stated, “The rate of full assured payout will be 50% of 12 monthly average basic pay, immediately prior to superannuation. Full assured payout is payable after a minimum 25 years of qualifying service.”
The UPS is a ‘fund-based’ payout system. It relies on the regular and timely accumulation and investment of applicable contributions for grant of monthly payout to the retiree. The contribution is required from both the employee and the employer.
Unified Pension Scheme: Date
The Unified Pension Scheme will be operational from 1st April, 2025, according to the Pension Fund Regulatory and Development Authority (PFRDA) statement. It is the regulatory body for supervision and regulation of pensions in India.
Enrollment Form
The UPS application requirements depend on the applicant’s employment status, as different forms must be submitted. Current government employees should submit Form A2, while newly appointed staff members need to fill out Form A1. Retired government employees must submit Form B2 to apply for the program. In case of a pensioner’s passing, their spouse should complete Form B6. From April 1, central government employees can access and download the UPS scheme notification from the Protean CRA website at https://npscra.nsdl.co.in
Moreover, the application process allows employees to choose between online submission or offline submission through their department’s head office or the Drawing and Disbursing Officer.
The Central Government employees, covered under NPS, are eligible to submit their option.
A minimum assured payout of Rs.10, 000 per month has been guaranteed in case superannuation is after 10 years or more of qualifying service. Notably, it is subject to timely and regular credit of contributions and no withdrawals.
Eligibility Criteria For UPS
Eligibility Criteria for the Central Government employees to receive assured payout under UPS?
Employees covered under NPS, who opt UPS will be assured payout on following the criteria.
On superannuation after completing a minimum of 10 years’ qualifying service, from the date of superannuation.
In case of retirement under the provisions of FR 56 (j) from the date of such retirement.
In case of voluntary retirement after a minimum qualifying service period of 25 years.
