Vikrant Shekhawat : Aug 26, 2024, 08:54 AM
Unified Pension Scheme: On August 24, the Modi government launched the Unified Pension Scheme (UPS), which introduces a new pension system for government employees. This scheme will replace the Old Pension System (OPS), with some changes. Under UPS, government employees will get the benefits of a new type of pension scheme, but it is different from the General Provident Fund (GPF).GPF and UPS: Important DifferencesGPF is only for government employees, in which employees have to contribute a minimum of 6% of their salary. A lump sum amount is received on retirement. However, UPS does not have the provision of contribution similar to GPF. UPS will provide the benefit of assured family pension, in which on the death of the employee, his family will get 60% pension immediately. Along with this, assured pension, assured minimum pension and dearness allowance will also be available.Features of UPSUPS also has provision for superannuation and gratuity, in which 1/10th of salary and dearness allowance will be added to gratuity after every 6 months of service. This payment will not affect the assured pension.These things are not there in UPSUPS does not have provision for 10% deduction of salary and 8% interest like GPF. On retirement, the entire money will not be returned without tax, and the pension will not be 50% of the last salary. There has been a change in the previous system of family pension as well. In the old OPS, family pension was available for full 10 years, whereas in UPS this system is different.Employees will get many new benefits from the new UPS system, but some benefits of the old system like provision of GPF and the previous structure of pension have now changed.