Unified Pension Scheme (UPS) Latest Update: Demand placed for supplementary UPS grant of Rs 7,000 crore

A demand has been placed for supplementary grant of Rs 7,000 crore for Unified Pension Scheme (UPS).

UPS is a new pension scheme that will be applicable from April 1, 2025.

The scheme is a mix of Old Pension Scheme (OPS) and National Pension System (NPS).

Add Zee Business as a Preferred Source

UPS guarantees a minimum Rs 10,000 monthly pension for government employees on completion of at least 10 years of service.

Under UPS, one becomes eligible for a full-scale pension on completion of 25 years of service.

In UPS, the government contribution to an employee's UPS account will be 18 per cent of the basic pay and dearness allowance (DA).

On the other hand, the employee will contribute 10 per cent of their basic pay and DA.

Employee/employer contribution in UPS

The central government employee contribution to their UPS account will be 10 per cent, while the employer contribution will be 18.5 per cent.

From the government's 18.5 per cent contribution, 8.5 per cent will go to the pool corpus on an aggregate basis.

The additional contribution will support the employee's assured payouts under the UPS option.

While the employee's and the government's 10 per cent contribution each will be credited to the employee’s individual corpus, which will be invested in an equity-linked programme.