The Indian Government will introduce a New Scheme called the Unified Pension Scheme w.e.f. 1st April-2025 subject to approval of Union Cabinet Coming just top of the back drop of very limited Fabulous Elections in Assemblage Method, this programme seeks to reduce typically the some unfulfilled dreams with governing administration personnel out from specific Article Retirement living Scheme (NPS).
National Pension Scheme Introduction
- Replaces Old Pension Scheme — OPS of 2004.
- Seeks to make pension system sustainable.
- Pensions are not exempt from market conditions.
- Employees and the government contribute, but benefits provided are often erratic and less than projected.
Unified Pension Scheme (UPS) Explained
- Introduced in 2019 — unifying different pension schemes under the name for economic security.
- Easy identification of individuals, linked to the Aadhaar number.
- Employee, employer and government contributions
- Financial Inclusion via Digital Transaction
Features of Unified Pension Scheme ( UPS ) Compare with Other pension Schemes
Basic Pay: 50% of average basic pay over the last three years, with an increase as service lengthens.
Minimum Pension Guarantee: For retirees, with less than 25 years of service received the monthly minimum pension amount would be Rs.10,000 a month for at least ten years,'
Family Pension: In case the retiree dies, it offers 60% of last drawn pension to be paid monthly family.
Pensions Ingression: It is based on all India Consumer Price Index and act as a inflation adjustment.
Lump Sum Payment at Retirement: Retirees get one-time payment depending upon the last pay drawn by them.UPS started in 2004 and is a facility available to all government employees who retired under the NPS.
Financial Implications: Implementing UPS will cost the government around Rs 6,250 crore initially, plus an additional Rs 800 crore for arrears.
Month: Current Affairs - August 30, 2024
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