– Government to implement new Unified Pension Scheme (UPS) for central government employees starting 1 April 2025
– UPS offers guaranteed fixed pension of 50% of average basic pay for employees with at least 25 years of service
– NPS is market-driven and offers flexibility in pension amount based on market performance
– UPS includes minimum assured pension of Rs 10,000 per month and inflation protection
– Employee contributions are similar in both schemes, but government contribution is higher in UPS
– UPS guarantees family pension of 60% of employee’s pension, while NPS family pension varies
– UPS applicable for central government employees, NPS expanded to include private sector employees
– UPS provides more predictable and secure retirement benefits compared to NPS
– Current government employees enrolled in NPS have option to transition to UPS with potential arrears with interest