The regulatory authority for the pension funds (PFRDA) recently concluded the regulations required for the implementation of the UPS. The program applies to three groups of employees of the central government.
The Unified Pension Scheme (UPS) will be launched from today. In such a situation, customers can now switch national pension scheme (NPS) to the new pension program. It is intended to offer guaranteed pensions, state contribution and increased investment flexibility for employees of the central government after retirement. The migration from NPS to UPS is currently available in the official CRA portal (Central Recording Agency).
Objective persons who want to switch from NCPS (NPS) to Unified Pension Scheme (UPS) can easily start the migration process by visiting the official website npscra.nsdl.co.in/ups.php. You can also switch from NPS to UPS by physically sending the form.
Ups rollout
The Unified Pension Scheme (UPS) initiated by the central government represents a significant change in the pension performance structure for employees who are inscribed in the National Pension System (NPS).
The pension fund regulation and development authority (PFRDA) recently concluded the regulations required to implement the UPS. This program applies to three groups of the central government employees. This scheme came into force from April 1, 2025, i.e. today. Employees who choose the option of NPS can also use this benefit. Around 23 Lakh government employees will benefit from this expansion.
Who will be justified?
- Employees who have been working for 10 to 25 years receive a pension in relation to their years of service, which leads to longer periods. People who complete at least 10 years receive a pension of at least 10,000 RS per month.
- As part of the UPS system, the employees contribute 10% of their basic salary and pension authorization, whereby the government also corresponds to this contribution, which invests a total of 20% of the salary.
- While the government’s default programs manage these contributions, employees have the opportunity to choose a private pension fund manager for their investments.
- UPS also supports the pensioner’s spouse financially. In the event of the pensioner’s death, the spouse receives 60% of the pension amount and ensures the financial stability for retired people and their families.
You can apply from today
From April 1st, authorized employees can easily register in the UPS program via the protege CRA portal. The employees have the opportunity to submit their nomination and electronically claim the form. As part of the new pension scheme, a 50% pension is administered on the basis of the average basic payment of the last 12 months before retirement. Provided that the employee has completed at least 25 years of service.
In the death of an employee, his family is given 60% of the pension. Apart from that, UPS guarantees a minimum pension of 10,000 RS per month, provided that the employee has served for at least 10 years.
Retirement deprivation
After retirement, the employees receive pension from their savings. Just like investment funds, a systematic withdrawal plan (SWP). If your savings are exhausted before the death of your spouse, payment is made by the government.
At the moment, the Unified Pension Scheme (UPS) is only available to the central government employees. The state governments decide whether this program will be implemented for your employees or not.
