– The government is set to implement a new Unified Pension Scheme (UPS) for central government employees starting from April 1, 2025
– UPS is an alternative to the existing National Pension Scheme (NPS) and offers a more structured and predictable pension plan
– UPS guarantees a fixed pension amounting to 50% of average basic pay for retirees with 25 years of service, with minimum assured pension of Rs 10,000 per month
– NPS is market-driven and does not guarantee fixed pension amount, depending on market performance
– UPS offers family pension of 60% of employee’s pension in case of death, while NPS family pension varies based on accumulated corpus and annuity plan
– UPS has a higher government contribution of 18.5% compared to 14% under NPS
– UPS offers inflation protection through indexation, while NPS lacks guaranteed returns
– Current government employees enrolled in NPS have the option to transition to UPS, potentially allowing them to receive arrears with interest.