UPS: The central government has launched a new option Unified Pension Scheme (UPS) for central employees under the National Pension System (NPS). This scheme has come into effect from 1 April 2025. Know here how much money will be deducted from your salary every month for UPS.
UPS: The central government has launched a new option Unified Pension Scheme (UPS) for central employees under the National Pension System (NPS). This scheme has come into effect from 1 April 2025. In this, the employee will be guaranteed pension according to certain conditions. Know here how much money will be deducted from your salary every month for UPS.
How much contribution will have to be made?
Under UPS, every month the employee will have to contribute 10% of his basic salary + dearness allowance. The government will also contribute the same amount. Apart from this, the government will make an estimated extra contribution of 8.5% to the pool corpus of UPS.
Who can take advantage of UPS?
Central employees who are in service on 1 April 2025 and come under NPS can opt for this new scheme. It is voluntary i.e. employees can go to UPS if they want. Once they go to UPS, they cannot return to NPS.
What will happen to the NPS amount already deposited?
If an employee wants to go from NPS to UPS, then his NPS corpus amount deposited till now will be transferred to the same PRAN (Pension Account). This PRAN will now be linked to UPS and his pension facility will be released from there.
What is Individual Corpus and Benchmark Corpus?
Individual Corpus: It shows the total amount deposited in the PRAN of every employee linked to UPS.
Benchmark Corpus: It is an imaginary value fixed by CRA (Central Recordkeeping Agency) to see what level the corpus amount of an employee is. This fixed investment is based on the net asset value (NAV) of the scheme.
The UPS scheme is an important step towards providing stable and secure pension to central employees. This scheme will provide a balance between traditional and investment based pension to the employees. UPS can be a good option for those employees who want to plan for fixed income for the future.
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