Government employees have been given two months to adopt unified pension scheme.
Central government has given employees coming to the National Pension Scheme Unified pension scheme To shift in more time. The biggest question is why this extension was given by the government. In fact, there is no special enthusiasm from government employees about UPS. So far, only one lakh government employees have brought themselves under UPS. Because of which the government has given its date till November and November. Let us also tell you what kind of update has been released by the government regarding UPS?
Government increased UPS deadline?
The Finance Ministry extended the deadline to choose the option of ‘Unified Pension Scheme’ (UPS) till 30 November in view of the mild response of central employees. The Finance Department of the Finance Ministry said in the information sent to the chairman of the Pension Fund regulator PFRDA that the deadline of choosing UPS for employees has been extended for two months. The department said that many positive changes have been made recently in UPS, including benefits and tax exemptions on switch options, resignation or compulsory retirement. In view of this, the concerned parties had demanded additional time to the employees to take decisions. The department said that keeping this in mind, it has been decided to increase the deadline of choosing UPS option. This decision has been taken after the approval of the Finance Minister.
What is UPS Scheme?
The Ministry has requested the PFRDA to make necessary amendments to its system and rules to implement this change. The government has introduced UPS as an alternative to NPS for central employees since April 1, 2025. Under UPS, employees will get a certain pension benefit. Unlike the old pension scheme (OPS), this scheme is based on contribution, in which the employee will have to pay 10 percent of his basic salary and dearness allowance while the government will contribute 18.5 percent. Within six months, only one lakh central employees have opted for UPS, while the total number of eligible employees for this is 23 lakhs.