The Unified Pension Scheme (UPS) is set to be operational from 1st April, 2025. Central Government employees under the National Pension System (NPS) are going to be benefitted by this scheme. The scheme has been introduced by the Central government as an option under the NPS for employees so that they can receive an assured payout after their retirement. It is a ‘fund-based’ payout system which relies on regular and timely accumulation and investment of applicable contributions (from both the employee and the employer (the Central Government)) for grant of monthly payout to the retiree.
In the notification regarding UPS by the Department of Financial Services, it stated, “The rate of full assured payout will be 50% of 12 monthly average basic pay, immediately prior to superannuation. Full assured payout is payable after a minimum 25 years of qualifying service.”
Minimum Assured-Payout Under UPS
A minimum assured payout of Rs 10,000 per month has been guaranteed under UPS in case superannuation is after 10 years or more of qualifying service. It is subject to timely and regular credit of contributions and no withdrawals.
Employees To Miss Assured Payout In THESE Cases
The Department of Financial Services have notified that assured payout UPS will not be available to the Central Government employees under some circumstances.
Following are the circumstances in which an assured payout under UPS shall not be available:
- In case of an employee superannuating before qualifying service of 10 years, from the date of superannuation.
- In case of removal or dismissal from service or resignation of the employee.
