The central government has launched the Unified Pension Scheme (UPS), through which central employees can now switch from NPS to UPS and avail guaranteed pension. Under UPS, pension of 50% of the average basic salary will be available 12 months before retirement and a minimum monthly pension of ₹ 10,000 will be guaranteed. Once switched to UPS, reversion will not be possible.
The central government has given a big gift to its employees. Now central employees can switch from their existing National Pension Scheme (NPS) to the new Unified Pension Scheme (UPS).
For a long time, government employees were demanding guaranteed pension, keeping this in mind, the government has announced UPS (Unified Pension Scheme). With the beginning of the new financial year, the government has also made available the option to switch from NPS to UPS.
What is Unified Pension Scheme (UPS)?
Unified Pension Scheme (UPS) is a new initiative of the government, in which employees will get guaranteed pension. This is especially beneficial for those government employees who were worried about the uncertainty of pension after retirement due to NPS. Both the government and the employee will contribute to UPS, which will make the pension system more secure and reliable.
How to switch from NPS to UPS?
If you want to switch from NPS to UPS then for this you have to follow some easy steps –
- First of all go to www.npscra.nsdl.co.in/ups.php .
- There you will see two options –
- Option to register for UPS
- Option to migrate from NPS to UPS
- Select the Migrate option and fill in the required information.
- After applying successfully, you will become a part of UPS and will be able to avail guaranteed pension.
Once the migration is done, reversion is not possible.
If a government employee switches from NPS to UPS, he will not be able to go back to NPS again. This will be a one-way switch.
What are the benefits of UPS?
- Guaranteed Pension: Under UPS, the employee is guaranteed a pension equal to 50% of his average basic salary, 12 months prior to retirement.
- Minimum ₹10,000 monthly pension: Employees who have completed 10 years of service will get a minimum pension of ₹10,000 every month.
- Equal participation by Government: The employee will contribute 10% of his basic salary and DA to the UPS Fund, and the Government will also contribute the same amount to UPS.
