Unified Pension Scheme: Understand UPS in 10 simple points

The Cabinet on Saturday approved the Unified Pension Scheme (UPS) for 23 lakh central government employees. The UPS ensures that all central government employees receive 50 per cent of their last drawn salary from the past 12 months as pension who have served for 25 years or more. Additionally, they will also be eligible for post-retirement inflation-linked increments in their pension amount. Cabinet Secretary-designate TV Somanathan said that the new scheme will come into effect on April 1, 2025, and its benefits will be applicable to those retiring by March 31, 2025, including the payment of any arrears. The employees will have an option to opt for the UPS or NPS from the upcoming financial year.

► For business news on the go, download ET app:

Follow ET on:

#news #latestnews #economictimes #ET #TheEconomicTimes #businessnews

[colonMicheal]

I Hit $38k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject.

[AnindyaGuptaisRising]

Pension should be tied to the income tax paid by an individual rather than whether the the service holder is government or private as social security requirements are the same!

[fullyawake]

So basically, they are forfeiting 60% withdrawal on retirement under NPS to fund 50% pension on last basic salary. They will give about 6 months' basic + DA on retirement (which is peanuts) instead of 60% withdrawal.

[pinakims]

No clarity in for less than 25 yrs of service.. How the proportion will be calculated....

[rimichoudhury]

Q1) What will happen to Voluntary contribution to NPS Tire 1, which is not part of 10% of employees and also not part of 14% of employers? For example, I have contributed an annual 50k voluntarily for the last 10 years. That money already is a good corpus; what will happen to my own earned money under the Unified Pension Scheme (UPS)? By the end of the next 20 years, if you calculate 8% interest, then it will become 23 Lakh rupees. Am I going to get my money as it is not part of 10% of employees and also not part of 14% of employers under UPS? My voluntary contribution should not counted under 50% pension.


Q2) What will happen to an Employee's contribution to NPS till now? If someone gets a job at age 25 and one gets a job at age 35.. then the contribution to NPS will be different. Suppose, both of them retired in the basic pay, then how it's fare between who contributed for 35 years and who contributed for 25 years?

[pasu]

The NPS has taken away the pension right of a healthy working employee for his retirement and a part of the labor has been exploited. In this UPS a part of the labor is exploited and part of it is to be delivered every month. And that too only for those who have worked for more than 10 years.

[jairagavsarath]

Happy to read it, have to implement properly, and it is an another option for pension. You can decide on your own. Old pension scheme didn't expect. Contribution Pension is the only option

[DEBASHISHSARKAR-suki]

It is a pension at the cost of gratuity, if the contribution to nps is taken into account. .

[viveknvarma]

What will happen to emoloyee contribution (atleast employee's 10% of basic pay+DA for a minimum 25 years)..imagine the financial loss if that employee unfortunately died at 61.

[snehasishdas]

What about the 10% +18.5% contribution? Will the employees get that amount back after retirement?

[Naare_trath]

Does that mean we will not get the 60% lumpsump of the corpus at retirement 😂

[NationFirst]

LAST, LEAST, LOWEST

Agniveers are better off than Short service commissioned officers who serve for 10 to 14 year (plus one year of training)of Armed forces.Some people were not happy with that. I apologise for being inaccurate and correct myself now:

- Agniveers are far, far better off. They get benefits of Seva Nidhi Scheme.
- Jawans are far better off. They get pension under OPS.
- Sweepers and jamadars in govt institutions are better off. They get NPS/UPS.
- Clerks and peons in govt institutions are better off. They get NPS/UPS.
- Jawans getting commission as officers through any entry are thousand times better off. They get OPS at total 12 years of service.
- Short Service Officers of Coast Guard are better off. They get NPS/UPS.
- Officials in PSUs and Autonomous Bodies are better off. They get NPS/UPS.
- CAPF / Paramilitary Forces personnel are better off. They get OPS/NPS/UPS.
- Jawans leaving service to join PSUs are better off. They get pro rata pension.

Total govt servants = 2 crore
SSCOs (including MNS) = 15k
2 crore divided by 15k = 1333

SSCO’s are 'literally "one in a thousand"

Ask not what the nation can do for you. Bullets and bombshells won't touch you because you're Short service commissioned officer.

SSCO’s are deliberately kept out of OPS, NPS and now UPS .

[anantkumar]

it is a really shameful and cruel decision that in the name of the UPS, the government will swallow the entire life saving of the huge whole corpus i.e. 10% contribution and return. Every time Government servants become a scapegoat.

[NationFirst]

LAST, LEAST, LOWEST

Grave injustice and deliberate denial of OPS NPS and now UPS to the Short Service Commissioned Officers of the Army Navy and Airforce.

Agniveers are better off than Short service commissioned officers of the Armed Forces, who serve for 10-14 years plus 1 year of training.Some people were not happy with that. I apologise for being inaccurate and correct myself now:

- Agniveers are far, far better off. They get benefits of Seva Nidhi Scheme.
- Jawans are far better off. They get pension under OPS.
- Sweepers and jamadars in govt institutions are better off. They get NPS/UPS.
- Clerks and peons in govt institutions are better off. They get NPS/UPS.
- Jawans getting commission as officers through any entry are thousand times better off. They get OPS at total 12 years of service.
- Short Service Officers of Coast Guard are better off. They get NPS/UPS.
- Officials in PSUs and Autonomous Bodies are better off. They get NPS/UPS.
- CAPF / Paramilitary Forces personnel are better off. They get OPS/NPS/UPS.
- Jawans leaving service to join PSUs are better off. They get pro rata pension.

Total govt servants = 2 crore
SSCOs (including MNS) = 15k
2 crore divided by 15k = 1333

Short service commissioned officers are"one in a thousand"


The primary purpose for which any Indian joins the triservices, is a sense of pride and dignity. With the UPS announced yesterday, that has been taken away from Short service commissioned officers completely. You may not be aware, but resentment against the blatant injustice against the SSCO community, is at its peak now, since SSCOs have been denied benefits of OPS, Pro-Rata Pension and CPF since inception the inception of SSC in 1962, denied NPS and CPF since 2004, and now denied UPS as well.

Ask not what the nation can do for you. Bullets and bombshells won't touch you because you're an SSCO.

[ArunPatil-jwzk]

Only one mission, Restore Old Pension"
Jumle wali sarkar nahi chalegi abki baar'
Vote For OPS

[My_Cents]

UPS is 😂 Angiveer of Employees by M😢😢diveer

[Priyanka-x]

Disappointing And This government thinks people are stupid

[Ravikumar.]

Hame kuch nahi chaiye 20 saal m chod do hamari Puri salary hame de do without any deduction

Hum apne aap dekh lenge apna retirement

[rakeshjena]

Jiska 24 years 2 month hoga usko kitna milega

[thetruth]

Pension should be given to non govt citizens, people who have not govt job.