Unified Pension Scheme: A piece of good news has come across for all government employees, as the government is going to launch yet another scheme to secure the employees’ future. The date of implementation of the new scheme will be from 1st. This new scheme is especially for pensioners, designed by the government. It comes with several benefits to be availed by the employees. Time to know the full story about the scheme.
Reasons For Starting The New Scheme-
The government had, however, made an announcement concerning the scheme right at the beginning of the year and then it was said that the new scheme would be implemented from the beginning of the new financial year, that is April 1. This scheme was a long-standing demand of employees, therefore, this implementation has been granted. These were the employees who were appealing for restoration of the old pension scheme. Earlier, 50 percent of the last salary of the central employees was made available as pension under the Old Pension Scheme. Now through this newly launched pension scheme UPS, employees are going to be entitled also to equal say benefits.
The Govt. Will Also Shoulder Full Contributions In The Scheme-
It is right to say that this new scheme came into being as an alternative of the National Pension Scheme. As per the scheme rules, all employees working in government posts will have to contribute a minimum of 10 percent of their basic salary with dearness allowance. Not to mention that central employees will get a 14% contribution from the government. And now, this has been raised to 18.5%. In addition, there will be another pool fund created separately under UPS, that will entail an 8.5% contribution from the government.
Know Other Benefits Available To The Employees-
Under the scheme, 50 percent of the last drawn salary of central employees would serve as a pension for them. The rules of this scheme stipulate the granting of prorated pensions to those employees who have served between ten to 25 years. Where an employee dies while in service, 60 percent of his pension shall be paid to his family. Employees will benefit under this banana scheme with gratuity upon retirement and a lump-sum payment. Any employee who has put in at least a tenure of 10 years of his service will have to receive a minimum of Rs 10,000 as pension per month.
These Employees Will Also Get Benefits-
In addition, employees granted 25 years of service from the date of entry into the company’s service shall be eligible to receive pension payments starting from an estimated retirement age. Not only this, one of the advantages concerning this scheme is that the retired employees under this scheme may also benefit from this scheme. Such employees will be allowed to enjoy receiving the pension with arrears of previous periods as worked upon by the interest rates of Public Provident Fund.
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