The central government launched the Unified Pension Scheme (UPS) last month to provide fixed pension to government employees. This scheme has been introduced as an alternative to the National Pension System (NPS). The central government had said that government employees will have the option to choose either NPS or UPS. In UPS, employees have to contribute 10 percent, while the government will contribute 18.5 percent.
With the announcement of UPS, the central government had said that under this scheme, those who work for at least 10 years will be given a minimum pension of Rs 10,000. At the same time, to get the full pension, one has to work for a minimum of 25 years. But if someone works for more than 10 years and less than 25 years under this scheme, then how will the pension be calculated? Let’s know.
How will you get pension if you work for less than 25 years?
Employees who retire without completing 25 years of service under UPS are also eligible to get pension. Government employees who have served less than 25 years will be given pension after retirement on a presumptive basis, which will depend on their service period and salary. The minimum monthly pension benefit under this scheme is Rs 10,000 for those who retire after a minimum of ten years of service.
For employees whose service is between 10 and 25 years, their pension amount will be calculated proportionately according to their tenure. Apart from this, dearness relief can also be given in it.
Features of Integrated Pension Scheme
- Pension amount: 50% of the average basic salary received in the last 12 months.
- Minimum Qualifying Service: Minimum 25 years of service is mandatory.
- Pension based on calculation for service period of less than 25 years, with minimum 10 years of service
- Family pension is paid at the rate of 60% of the pension drawal immediately before the death of the employee.
- Rs 10,000 per month will be given on retirement after a minimum of 10 years of service.
- Dearness relief will be given on pension, family pension and minimum pension.
- A lump sum payment will be given on retirement in addition to gratuity.
