National: New Delhi. Unified Pension Scheme:  Modi government has started a new pension scheme giving a big benefit to 23 lakh central employees. Unified Pension Scheme (UPS) will be implemented from April 1, 2025. National Pension Scheme customers will now have the option to switch to UPS. In this, government employees will get pension after retirement. 

Actually, the government's plan to make changes in NPS has come after the decision of many non-BJP states to re-implement the Old Pension Scheme (OPS) linked to DA and the demand raised by employee organizations in some other states.

So let us know how UPS, NPS and OPS are different from each other...

Integrated Pension Scheme

(UPS: Unified Pension Scheme)

Fixed  Pension

50% of average basic pay in the last 12 months prior to retirement.

Only employees who have worked for at least 25 years will get this benefit. 

Assured Family Pension

The family will receive 60% of the pension due just before the employee's death. 

Assured Minimum Pension

After a minimum of 10 years of service, a pension of Rs 10,000 per month will be given on retirement. 

Inflation Indexation Benefit

DR money will be given on these three pensions according to inflation. This will be based on the All India Consumer Price Index for Industrial Workers. 

gratuity

The employee will receive the salary and allowances for the last 6 months of his job as a lump sum amount. This will be 1/10th of the employee's last basic salary.

National Pension Scheme

Government's contribution

NPS promised pension based on contributions made by employees and the government. 

This required a contribution of 10 per cent from the basic salary of the central government employee and 14 per cent from the government.

The employee's contribution in UPS will remain at 10 percent, while the government's contribution will increase to 18.5 percent.

Pension Amount

The pension amount is not fixed in NPS as it is a market-linked scheme. UPS, on the other hand, offers a guaranteed pension, which is 50% of the salary for those who joined the service after January 1, 2004.

Family Pension

Family pension under NPS depends on the amount accumulated in the pension fund and the annuity plan chosen at the time of retirement.

For government and private employees

NPS is applicable to all government employees except armed forces personnel who joined the Central Government on or after January 1, 2004. It also applies to private sector employees. 

Old Pension Scheme/Old Pension Scheme

1. Under OPS, retired government employees used to receive 50 per cent of their last salary as monthly pension.
2. The amount keeps increasing with the increase in DA rates.
3. Employees were entitled to a maximum gratuity payment of Rs 20 lakh on retirement.
4. If a retired employee dies, his family receives continued pension benefits.
5. Moreover, unlike NPS, no deduction is made from the employee's salary for pension contribution under OPS.
6. States like Himachal Pradesh, Rajasthan, Chhattisgarh and Punjab have reverted to the Old Pension Scheme (OPS).