On August 24, the Modi government presented the details of the old pension scheme and the new pension scheme before the country. The new pension scheme introduced by the Modi government was called the Unified Pension Scheme. Many such provisions were included in it which seemed to be similar to the old pension scheme. Along with this, it was also announced that some new benefits will be given to the government employees. Amidst all this, thousands of employees who are already giving their contribution under the NPS are not sure whether they will get the benefit of the new UPS or will be deprived of it. So today we are going to answer your questions.
These people will not benefit.
In UPS, you need to complete a minimum of 25 years of service to get an assured pension. In such a situation, if the retirement age is 60 years, then you will have to work in the government till the age of 35. Otherwise, your pension will be adjusted according to the minimum pension.
The pension will not be 50% of the last salary
The big question in UPS is whether Castes, Tribes and OBCs will get age relaxation in government jobs. In many states, the age to join government service is up to 40 years, so they will not get the benefit of assured pension. Whereas in OPS there is no such condition. Employees do not have to make any contribution to OPS because it is fully funded by the government. In OPS, an employee gets 50 per cent of his last full salary as pension. In UPS, an employee gets assured pension equivalent to 50 per cent of the average basic pay of 12 months of his last salary.
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NPS people will have the option to choose UPS
A dearness allowance has also been provided for in the new scheme. This means that the value of the employee’s pension will not decrease over time. The employee’s pension will continue to increase in line with inflation. With this, under the Unified Pension Scheme, employees will have the option to choose between the existing new pension scheme and the UPS.
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I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,
