Staff choosing UPS could be eligible for an assured pension of fifty per cent of the common primary pay drawn during the last 12 months earlier than the superannuation for a minimal qualifying service of 25 years.
There could be no extra burden on workers choosing UPS. The worker’s contribution would stay 10 per cent, whereas the federal government contribution would go from 14 per cent to 18.5 per cent.
The brand new scheme will probably be relevant from April 1, subsequent yr.
Beneath the Previous Pension Scheme, OPS, retired authorities workers acquired 50 per cent of their final drawn wage as month-to-month pensions. The quantity retains growing with the hike in Dearness Allowance charges.
Staff contributed 10% of their primary wage whereas the federal government contributed 14% to the Nationwide Pension Scheme (NPS).
The Unified Pension Scheme, then again, assures pensions to retired workers with a authorities contribution of 18.5%.
Dearness Aid underneath the UPS will probably be based mostly on the All India Shopper Worth Index for Industrial Staff.
UPS, efficient from April 1, 2025 is estimated to place an extra burden of Rs 6,250 crore on the exchequer per yr.
The announcement got here in opposition to the backdrop of a number of non-BJP states deciding to revert to the DA-linked Previous Pension Scheme and worker organisations in another states elevating demand for a similar.
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