
UPS: PFRDA notifies assured pension scheme for government employees
The HinduThe Pension Fund Regulatory and Development Authority on Thursday notified the operationalisation of the Unified Pension Scheme which promises an assured pension of 50% of the average basic pay drawn over the last 12 months prior to superannuation. This follows the UPS notification dated January 24, by the government for Central government employees covered under the National Pension System. These regulations enable the enrolment of Central government employees including an existing Central government employee in service as on April 1, who is covered under the NPS and new recruit in the Central government services, who joins service on or after April. Under the old pension scheme, effective before January 2004, employees got 50% of their last drawn basic pay as pension. Unlike the old pension scheme, UPS is contributory in nature, wherein employees will be required to contribute 10% of their basic salary and dearness allowance while the employer's contribution will be 18.5%.
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