UPS: A big service has been started for the employees of the Central Government. Employees will be able to calculate themselves how much pension they will get according to their contribution to NPS and UPS. NPS Trust has launched Unified Pension Scheme (UPS) Calculator
UPS: A big service has been started for the employees of the Central Government. Employees will be able to calculate themselves how much pension they will get according to their contribution to NPS and UPS. NPS Trust has launched Unified Pension Scheme (UPS) Calculator, which will help employees to understand the estimated pension under NPS i.e. National Pension System and the new UPS scheme through online medium by comparing it. This calculator shows the estimated monthly pension under both the schemes side by side to the employees on filling some basic information. This will help them to choose the right pension option for themselves.
What is Unified Pension Scheme (UPS)?
UPS is an optional pension scheme launched by the Central Government, in which money is received simultaneously on retirement along with guaranteed monthly pension. This scheme is now available as an alternative to NPS and aims to provide employees with a more secure and fixed retirement.
How does the UPS scheme work?
Employees contribute 10% of their basic salary and DA. The government also contributes the same amount. This money is invested through a default scheme or a private pension fund manager (PFM) as per the employee’s choice. If the employee has more than 25 years of service, he will get 50% of the average basic salary of the last 12 months as pension. Proportional pension will be given for 10 to 25 years of service. Those who complete at least 10 years of service will get a minimum guaranteed pension of Rs 10,000 per month.
The family will also get security
If the pensioner dies, his spouse will continue to receive 60% of the pension. This ensures the financial security of the family.
Payment like SWP on retirement
In the UPS scheme, pension payment after retirement will be made like SWP i.e. Systematic Withdrawal Plan of Mutual Fund. If the pension fund is exhausted and the pensioner or their spouse is alive, the government will continue the payment from a common pool.
Why is UPS calculator important?
This calculator allows central employees to compare the estimated pension under NPS and UPS, so that they can choose the right scheme according to their needs. This will make retirement planning easier and more sensible. At present, UPS is available only for central government employees. State governments can also implement it for their employees if they want.
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