Unified Pension Scheme: A New Option for Government Employees
The Finance Ministry introduced a one-time switch from the Unified Pension Scheme (UPS) to the National Pension System (NPS) for government employees. Employees can opt for this switch based on their retirement schedule. UPS offers assured payouts and additional gratuity benefits. The scheme closes enrollment on September 30.
- Country:
- India
The Finance Ministry has announced a temporary opportunity for central government employees to switch from the newly launched Unified Pension Scheme (UPS) to the National Pension System (NPS). This move aims to provide flexibility and enhanced benefits to government employees.
Beginning April 1, 2025, the UPS will be an available option under the NPS for central government employees, providing them with assured payouts. As of July 20, around 31,555 employees have opted for this scheme, with the enrollment deadline set for September 30.
The switch can be made anytime up until one year before their expected retirement date or three months before voluntary retirement. UPS also includes 'Retirement gratuity and Death gratuity' benefits, and government employees under the NPS opting for UPS can retain various pension rule benefits. Additionally, tax benefits similar to those of NPS will apply to UPS under the Income Tax Act of 1961.
(With inputs from agencies.)
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