Government will be implemented from July 1, what does this new scheme say.

New Pension Scheme: The new Unified Pension Scheme of the Central Government will be implemented from July 1, what does this new scheme say.

On August 24, Union Minister Ashwini Vaishnav said that the Unified Pension Scheme has been approved in the meeting of the Union Cabinet Minister, now (UPS) it will be implemented from 2025.

Important points of Unified Pension Scheme.

1. 50% of the average basic salary of the employee for the 12 months before retirement will be given as assured pension. If someone has worked for 25 years, then he will get this pension. If it is less than 25 years and more than 10 years, then it will be reduced.

2. The pension that will be made at the time of the death of the employee (if he had retired instead of death), 60% of it can be given to the family as pension.

 3. After completing at least 10 years of service, the assured minimum pension will be Rs 10,000 per month, with inflation it will be around Rs 15,000 today.

Note: On all these three pensions, DR (Dearness Relief) money will be given according to inflation and which will be based on All India Consumer Price Index for Industrial Workers (AICPI-W).

Secondly, on completion of 6 months of service, the government will provide 10% of the salary and DA of these months to every employee as a lump sum amount after retirement.

In the pension scheme, 50% of the basic salary i.e. Rs 25,000 +DR Family pension: 60% of the pension i.e. Rs 15,000 +DR Minimum pension: Rs 10,000 +DR has been talked about. 

Loss regarding gratuity. 

Loss regarding gratuity is being told in the Unified Pension Scheme that on 25 years of service and basic salary of Rs 50,000, the gratuity in the old pension scheme will be Rs 12,37,500, whereas in UPS it has been up to Rs 9,37,500, compared to NPS, UPS has the option of fixed pension. 

New Pension Scheme (NPS) 

10% of the employee's basic salary + DA is deducted. 

NPS is based on the stock market, so it is not safe, there is no provision of dearness allowance after six months. 

Here, there is no guarantee of fixed pension after retirement. NPS is based on the stock market, so there is also a provision of tax here and in this scheme, 40% of the NPS fund has to be invested to get pension on retirement.

Old Pension Scheme (OPS).

1. In this scheme, half the amount of the employee's salary is given as pension at the time of retirement.

2. In the old pension scheme, no money is deducted from the employee's salary for pension.

3. In the old pension scheme, payment is made from the government treasury.

4. In this scheme, gratuity amount of up to Rs 20 lakh is available.

On the death of the retired employee, his family gets the pension amount.

5. There is a provision of General Provident Fund (GPF) in the old scheme.

6. There is a provision of dearness allowance (DA) to be received after six months.

Key points of Unified Pension Scheme.

50% of the basic salary will be available as pension. The government has guaranteed this and on the day of retirement, the average of the basic salary of the previous 12 months will be calculated and then 50% of that amount will be given as pension. But one thing is clear that the job should be at least for 25 years.Secondly, if you retire after working for at least 10 years, you will get a pension of Rs 10,000.

The contribution of the employees will remain at 10%. The government will increase its contribution from 14% to 18.5%. It will be reviewed every 3 years whether it should be increased or not.

Family pension will be given on the death of the employee. The family pension will be 60% of the pension that would have been due to the employee at the time of his death (if he had retired instead of death).

Those who have retired under NPS after 2004 will also be able to avail the benefit of UPS. The government will give arrears along with interest, interest will be equal to the PPF rate.