Unified Pension Scheme (UPS) Update 2025: The Central Government has introduced a few options under the Unified Pension Scheme (UPS) for central employees coming under the National Pension System (NPS). In this scheme, the employee is assured some payment after retirement. This means that pension payouts will not be dependent on any market performance. NPS is a market-linked pension scheme where the pension of the employee depends on the performance of stock market and debt market. UPS guarantees a monthly pension of Rs 10,000.
Unified Pension Scheme Will Be Implemented Soon
UPS will come into effect from April 1, 2025. If the employees coming under NPS select UPS once, then they will not have the option of using NPS again. There is a formula to calculate pension in UPS. With this formula, a person can calculate his pension.
Choose Either NPS Or UPS
If the employees covered under NPS select UPS once, then they will not have the option to use NPS again.
50% Of Payout X (Sum of 12 Months Basic Pay/12)
This formula can be used only when the employee has 25 years or more of service left. If the service left is less than 25 years, then the payout will be in proportion to that. If the employee takes voluntary retirement after 25 years of service, then the payout will start from the original date of retirement.
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