Last update:
The Government of India introduced the Integrated Pension Scheme (UPS) for employees starting from April 2025, with post-service payment. Compare opes, NP and UPS differences.
UPS to start from 1 April.
UPS vs NPS vs Ops: The Government of India has introduced an option to choose the Integrated Pension Scheme (UPS) under the National Pension System (NPS) for the Central Government employees. UPS will be operational from April 01, 2025. The UPS allows them to receive a confident payment after their retirement.
Currently, employees of the Government of India have two options Old Pension Scheme (OPS) and NPS (new pension scheme) to secure their retirement life. Soon he will have another option known as UPS (Integrated Pension Scheme).
Let’s understand the basic difference between OPS vs NPS vs UPS
Old pension scheme
OPS was available for government employees involved in government jobs before 2004. After the introduction of NPS in 2004, OPS was closed for new joiners. However, those who attended the workforce before 22 December 2004, still cover under OPS.
New pension scheme
NPS is an easily accessible, low cost, tax-skilled, flexible and portable retirement savings account. Under NPS, the person contributes to his retirement account and also
The employer can also correct the person’s social security/welfare.
The NPS is designed on the basis of the defined contribution, in which the customer contributes to his account, there is no defined benefit that will be available at the time of exit from the system and the contribution made accumulated depends on the income generated from the investment of such money and the income generated from the investment of such money.
After 2004, all government employees have been covered under NP. Later, it was extended to cover private sector employees, self-employed individuals and NRIs in 2009.
Integrated pension scheme
Originally, UPS is a fund-based payout system that depends on regular and timely investment and applied contribution (for two employees and employers (Central Government) for a grant for monthly payment.
While NPS is connected to the market with returns based on equity and loan performance, UPS provides assurance payment on the basis of previous drew salary.
The NPS is subject to the market fluctuations, while UPS has low risk, as pension is guaranteed.
The amount of NPS will depend on the accumulated corpus through investment. On the other hand, UPS, minimum assured pension of Rs 10,000 per month after 10 years of service.
Once under NPS, employees opt for UPS, they cannot return to NPS.
UPS Calculator: How to calculate pension under UPS
The rate of full assured payment will be @50% of 12 monthly average basic salary immediately before supernation. Full confident payment is payable after the other
Minimum 25 years of qualifying service. In case of low qualification service period, proportional payment will be acceptable.
Minimum guaranteed payment of Rs. 10,000 per month will be assured that after supernation is under 10 years or more qualification service and is subject to regular and regular credit of contribution. In cases of voluntary retirement after a minimum of 25 years of qualifying service, the payment given will begin on the date on which the employee continued in the service.
