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The UPS will formally take impact from April 1, 2025. For these retiring underneath the NPS till March 31, 2025, pension advantages and arrears can be relevant.
UPS is being applied by the Central Government, benefitting 23 lakh central authorities workers. (Image for illustration: News18)
The rollout of the Unified Pension Scheme (UPS) is reportedly on observe for an official notification by October 15, as the federal government fast-tracks efforts for a deliberate launch on April 1, 2025.
According to a report by The Economic Times, efforts to finalise the UPS guidelines are being overseen by Cabinet Secretary TV Somanathan, who’s heading a cross-departmental job power.
Regular consultations with key ministries are underway to make sure a seamless transition to the brand new pension scheme. Somanathan was additionally instrumental within the earlier evaluate of the National Pension System (NPS), which led to this proposed shift to UPS.
The Department of Expenditure is main the drafting and improvement of the UPS, whereas different departments play essential supporting roles. The Department of Personnel and Training can be accountable for gauging the preferences of present workers, who can have the choice to both stick with the NPS or transfer to the UPS. This choice course of is scheduled to be accomplished earlier than the April 2025 rollout.
Key departments just like the Department of Pension and Pensioners’ Welfare are finalising the specifics of the scheme. Meanwhile, the Department of Administrative Reforms is engaged on revising service guidelines, and the Pension Fund Regulatory and Development Authority (PFRDA) is making ready the funding framework for the pension funds. Additionally, the National Securities Depository Ltd (NSDL) is evaluating the technical necessities for UPS implementation.
The UPS will formally take impact from April 1, 2025. For these retiring underneath the NPS till March 31, 2025, pension advantages and arrears can be relevant.
The Union Cabinet’s choice on August 24 has already given a significant increase to round 23 lakh central authorities workers, promising a assured pension of fifty% of their final wage to those that joined after January 1, 2004, underneath the NPS.
Unified Pension Scheme vs National Pension Scheme
With the addition of all these options, it marks the transformation of the NPS, which promised pensions based mostly on the contributions made by workers and the federal government.
NPS has been applied for all authorities workers besides these within the armed forces becoming a member of the central authorities on or after January 1, 2004.
Most state/Union Territory governments have additionally notified NPS of their new workers.
