What's New :
What's New :

info@iasscore.in

8448496262

हिन्दी

GS Analyst: Daily Current Affairs

27th August 2024 (13 Topics)
facebook sharing button
telegram sharing button
whatsapp sharing button
twitter sharing button
twitter sharing button Copy
1 Aug
2 Aug
3 Aug
5 Aug
6 Aug
7 Aug
8 Aug
9 Aug
10 Aug
12 Aug
13 Aug
14 Aug
15 Aug
16 Aug
17 Aug
19 Aug
20 Aug
21 Aug
22 Aug
23 Aug
24 Aug
26 Aug
27 Aug
28 Aug
29 Aug
30 Aug
31 Aug

Unified Pension Scheme (UPS)

Context

The Union Cabinet approved the Unified Pension Scheme (UPS) for central government employees. This scheme will be effective from April 1, 2025, and will benefit 23 lakh central government employees.

What is UPS?

  • The Central Government has launched the Unified Pension Scheme (UPS), which provides government workers with a steady pension based on their length of service and most recent basic salary drawn.
  • Key-Features:
    • Assured pension: For a minimum qualifying service of 25 years, 50% of the average basic salary drawn for the past 12 months prior to superannuation. Up to a minimum of ten years of service, this compensation is to be commensurate with shorter service periods.
    • Assured family pension: 60% of pension of the employee immediately before her/his demise.
    • Assured minimum pension: After at least ten years of service, @10,000 per month in superannuation.
    • Inflation indexation: On assured pension, on assured family pension and assured minimum pension. Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees.
    • Lump sum payment at superannuation in addition to gratuity: 1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service. This payment does not diminish the quantum of secured pension.
  • Eligibility: UPS applies to all those who retired under the NPS from 2004 onwards
  • Unlike the Old Pension Scheme (OPS), where employees made no contributions, UPS requires employees to contribute 10% of their basic salary and DA, while the government contributes 18.5%. A portion of the government's contribution (8.5%) goes into a guarantee reserve fund to manage any shortfalls. 

How is it different from NPS and OPS?

New Pension Scheme (NPS)

Old Pension Scheme (OPS)
  • Pension Type: Based on the accumulated value of contributions made by both the employee and the government, invested in market-linked securities.
  • Eligibility: Applicable to all central government employees who joined after January 1, 2004, and continues as an option under the UPS.
  • Contributions: Employees contribute 10% of their basic salary and DA; government contributes 14%.
  • Features:
    • Pension depends on the accumulated corpus and investment performance.
    • No guaranteed minimum pension; benefits are variable and depend on market returns.
    • Less predictability in pension amounts compared to UPS.
  • Implementation Date: Replaced OPS from January 1, 2004.
  • Pension Type: Provides a guaranteed pension based on a fixed percentage (usually 50%) of the last drawn salary.
  • Eligibility: Applies to employees who retired before January 1, 2004, or those states that have opted to revert to OPS.
  • Contributions: No employee contributions required; fully funded by the government.
  • Features:
    • Guaranteed pension of 50% of the last drawn salary.
    • Regular dearness allowance adjustments based on inflation.
    • No lump sum payments or contributions by employees.
    • Implementation Date: Preceded NPS, and has been replaced by NPS in most states; however, some states have reverted to OPS recently.

More Articles

No more Delays
Polity & Governance Government Schemes
Crime, Health-Worker Safety and a Self-Examination
Polity & Governance Governance
Unified Pension Scheme
Polity & Governance Government Interventions
Unrest in Balochistan Region
International Relations India and its Neighbourhood
Japan and China’s Airspace Incursion
International Relations International Organization
MoE defines ‘Literacy’ and ‘Full Literacy’
Polity & Governance Governance
Justice J.S. Verma Committee & Death Penalty for Rape
Polity & Governance Governance
MHA announces five new districts in Ladakh
Polity & Governance Government Interventions
Unified Lending Interface (ULI)
Economy Money and Banking
US' New Missile (AIM-174B missile)
Science & Technology Defence
Chandrayaan-3's Pragyan rover
Science & Technology Space
Solar Paraboloid Technology
Ecology and Environment Environment Conservation
X

Verifying, please be patient.

Our Center

Delhi (Karol Bagh) Centre

GS SCORE, Second Floor, Metro Tower, 1B, Pusa Road,
Karol Bagh, New Delhi - 110005 (Beside Karol Bagh
Metro Station Gate No. 8)

Email: info@iasscore.in

Phone: +91 8448496262

COURSES

TOPPER'S CORNER

RESOURCES

STATE PCS

ACTIVITY

POLICY

Still Have Questions?

84484 96262
Enquire Now