NPS vs UPS for Retirement Pension: The Finance Ministry has now extended the deadline to join UPS to 30 September. Many changes have been made by the central government after the launch of UPS. Here the government is engaged in promoting UPS.
NPS vs UPS for Retirement Pension: In the Unified Pension Scheme, employees will get benefits like fixed pension, lump sum amount and gratuity after retirement. The biggest benefit of UPS is assured monthly pension. If you have worked for 25 years, then after retirement you will get 50 percent of your average basic salary of the last 12 months every month.
NPS vs UPS for Retirement Pension: In the Unified Pension Scheme, employees will get benefits like fixed pension, lump sum amount and gratuity after retirement. The biggest benefit of UPS is assured monthly pension. If you have worked for 25 years, then after retirement you will get 50 percent of your average basic salary of the last 12 months every month.
Retirement planning has now become easier than before for those working in government jobs. The central government launched the Unified Pension Scheme (UPS). The last date to join it is 30 September 2025. There is very little enthusiasm among the employees switching to UPS. The government has also made many changes in it.
If a government employee does not opt for UPS, then the central government will consider that the employee has opted for NPS. National Pension System (NPS) is an optional retirement savings scheme. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
Under UPS, government employees will get many benefits like fixed pension, lump sum amount and gratuity after retirement. This scheme is considered better for those people who need financial security after the job.
Central government employees covered under NPS can opt for UPS under the National Pension System. Such employees will be considered eligible. The contribution made in NPS is invested by dividing it into debt and equity according to the age of the employee and the scheme chosen. Hence, the return on the investment made in it is not fixed but market linked.
The advantage of UPS is that after completing 25 years of service, central employees will get a fixed pension of at least 50 percent of their last salary and a lump sum amount. There is no fixed pension system in NPS. There is a Dearness Relief (DR) system in UPS. In such a situation, your pension will keep getting upgraded according to inflation. Meaning, as much inflation increases, your pension will also increase.
