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Time of India
6 hours ago
- Business
- Time of India
Double gain for UPS subscribers: Gratuity bonanza over and above lump-sum benefit for these government employees, here's how
Central Government employees under the Unified Pension Scheme (UPS) now gain retirement and death gratuity benefits up to Rs 25 lakh, as per the latest rules. This adds to the existing lump-sum payment within UPS, offering a double financial advantage. Read below to know how government employees can benefit from this new development. Tired of too many ads? Remove Ads What did the government say about the gratuity payment under UPS? What does this mean for government employee subscribing to UPS? Tired of too many ads? Remove Ads Serial no. Length of qualifying service Rate of death gratuity 1. Less than one year Two times of emoluments 2. One year or more but less than five years Six times of emoluments. 3. Five years or more but less than eleven years Twelve times of emoluments. 4. Eleven years or more but less than twenty years Twenty times of emoluments. 5. Twenty years or more Half of emoluments for every completed six-monthly period of qualifying service subject to a maximum of thirty three times of emoluments Tired of too many ads? Remove Ads How much lumpsum amount can you get under UPS? Comparison between UPS and NPS Particulars Unified Pension Scheme (UPS) National Pension System (NPS) Employer's contribution The employer contributes 18.5% of the employee's basic salary to the pension fund. The employer deposits 14% of the basic salary into the pension account. Pension Payout Offers a fixed monthly pension, which is 50% of the average basic pay earned in the final 12 months before retirement (for employees completing 25 years of service). No fixed pension is guaranteed. The monthly pension depends on the performance of the investments over time and the final amount accumulated. Employee Contribution Employees will contribute 10% of the basic salary to the pension fund. Employees will contribute 10% of the basic salary to the pension fund. Inflation Adjustment Pension payments are periodically adjusted based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW) to protect against inflation. NPS does not offer automatic inflation adjustments. It does not have a built-in mechanism like DA (Dearness Allowance). Central Government employees who have opted for Unified Pension Scheme UPS ) can now receive retirement and death gratuity benefits of up to Rs 25 lakh, according to the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021. This means UPS subscribers will now enjoy gratuity payments (on both retirement and death in service), along with a lumpsum payment already built in the UPS. UPS subscribers will get a lump sum amount equal to 10% of the emoluments for each completed six months of on to know what this will mean for central government to a press release dated June 18, 2025, the government said: 'The Department of Pension and Pensioners' Welfare vide its OM No. 57/01/2025-P&PW(B)/UPS/10498 dated 18.06.2025, has issued clarification that the Central Government employees opting for Unified Pension Scheme shall be eligible for benefit of 'Retirement gratuity and Death gratuity' under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021.'Shravan Shetty, Managing Director, Primus Partners, says the key benefit is that employees under UPS can now access lump sum gratuity payouts upon retirement or in the unfortunate event of death in service—benefits that were earlier unclear or unavailable.'This update under the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021 gives UPS subscribers a more comprehensive social security net and provides financial support to families and retirees during critical life stages,' says Ahmed, Partner, Singhania & Co agrees with Shetty and adds: 'UPS subscribers get both benefits – lump sum benefits from UPS itself and gratuity benefits carried over from NPS rules.'The retirement gratuity formula under Rule 22 of Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021 is:'..retirement gratuity equal to one-fourth of his emoluments for each completed six monthly period of qualifying service, subject to a maximum of 16 1⁄2 times the emoluments.'The death gratuity formula under Rule 22 of Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021 is:Source: Rule 22 of Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021The term emoluments means basic pay plus dearness allowance (DA). As per the said rules, stagnation increment is treated as emoluments for calculation of gratuity amount has been increased up to Rs 25 lakh. According to an office memorandum dated May 30, 2024, '..the maximum limit of Retirement Gratuity and Death Gratuity under the Central Civil Services (Pension) Rules, 2021 or the Central Civil Services (Payment of Gratuity under National Pension System), Rules 2021, would be increased by 25% i.e. from Rs 20 lakh to Rs 25 lakh with effect from January 1, 2024.'The government has not yet clarified or explained that government employees opting for UPS will not get Lumpsum and retiral/death gratuity benefits both, hence experts have interpreted the law and answered that the said employees will get both the benefits under UPS, until the government clarifies this is not the Joshi, Senior Associate, PSL Advocates & Solicitors says: "By way of these clarifications, the DoPPW has resolved several concerns of the employees with regard to losing their gratuity benefits while opting-in for the UPS. This development marks a progressive blending of old and new pension schemes and reflects the beneficial nature of the framework. As the gaps between UPS and Oold Pension Scheme (OPS) are now resolved, it ensures parity and is likely to encourage employees to opt for UPS with an option to avail benefits of OPS as well."A lump sum amount is calculated as 1/10th of their last drawn monthly pay for every six months of completed says: 'Upon retirement, employees will receive a one- time payment alongside gratuity, calculated as 1/10th of their monthly salary (basic pay plus Dearness Allowance) for every six completed service months. This extra amount does not affect the assured pension.'If we compare the lumpsum benefit under UPS with NPS, then under NPS employees can withdraw up to 60% of the NPS corpus as lump sum on superannuation, which could be bigger than the lump-sum received under UPS. However, the regular income generated by annuity purchased with 40% of the remaining retirement corpus may not be as big as in case of in NPS, the employees have the option of investing their corpus in equities which isn't possible with UPS. This means there is a greater potential for a bigger corpus in NPS compared to UPS, especially if the stock market yields returns of over 8% to 10% per annum during their a table showing how UPS and NPS differs:
India.com
7 hours ago
- Business
- India.com
Sivasubramanian Ramann Takes Charge As PFRDA Chairperson: Finance Ministry
New Delhi: Sivasubramanian Ramann on Friday assumed charge as the Chairperson of the Pension Fund Regulatory and Development Authority (PFRDA), according to a Finance Ministry statement. He has been appointed for a tenure of five years, with effect from the date of assumption of charge of the post or till he attains the age of 65 years, or until further orders, whichever is the earliest, the statement read. Ramann served as an officer of the Indian Audit and Accounts Service (IA&AS) from the 1991 batch. Prior to joining PFRDA, he served as the Deputy Comptroller and Auditor General and Chief Technology Officer in the Office of the Comptroller and Auditor General of India. According to the ministry, he has previously held several leadership positions, including Chairman and Managing Director of the Small Industries Development Bank of India (SIDBI), Managing Director and Chief Executive Officer of National E-Governance Services Ltd. (NeSL), and Principal Accountant General of the State of Jharkhand. For period 2006 to 2013, he also served as Chief General Manager (CGM) and then as Executive Director at the Securities and Exchange Board of India (SEBI). Ramann holds a Bachelor's degree in Economics and an MBA from the University of Delhi. He also has multiple professional and academic qualifications. 'With his vast experience in public finance, technology, and financial regulation, Ramann will guide PFRDA in its objective to strengthen India's pension system and promote retirement security for all citizens,' said the ministry. Meanwhile, the National Pension System (NPS) has emerged as a cornerstone of India's pension sector with an accumulated corpus of Rs 14.4 lakh crore and 8.4 crore subscribers under NPS and the Atal Pension Yojana (APY), said PFRDA chairman Deepak Mohanty during an event in April. Minister of State for Finance, Pankaj Chaudhary, said India's demographic landscape is rapidly changing and with 19 per cent of the population projected to be elderly by the mid-century, securing financial independence through inclusive pension schemes is not merely a goal, but a vital need for the country.
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Business Standard
8 hours ago
- Business
- Business Standard
UPS for govt employees: How to shift to pension scheme as deadline nears
Scheme assures monthly pension based on average basic pay of last 12 months before retirement and after 25 years of service Central government employees using the National Pension System (NPS) must decide by June 30 if they want to shift to the new Unified Pension Scheme. UPS offers assured monthly payouts after retirement: income security that NPS does not have. Here's a guide about UPS. Who can opt for UPS? All Central government employees currently covered under NPS and in service as on April 1, 2025, are eligible to opt for the UPS. The scheme becomes operational that date. Key benefits of UPS Assured monthly pension: 50 per cent of the average basic pay of the last 12 months before retirement, after 25 years of qualifying service. Minimum pension: Rs 10,000 per month if you retire with at least 10 years of service. Family pension: 60 per cent of the last payout will be provided to the spouse in case of the subscriber's demise after retirement. How to shift from NPS to UPS online Eligible employees can initiate the shift themselves using the official e-NPS portal. Here's the step-by-step process: Go to and click on 'NPS to UPS Migration' under the Unified Pension Scheme menu. Enter PRAN and DOB: Provide your Permanent Retirement Account Number (PRAN) and date of birth, then verify using the captcha. OTP verification: You'll receive a one-time password on your registered mobile or email. Enter it to proceed. Declaration form: Accept the declaration confirming the final and irreversible nature of the UPS option. e-Sign with Aadhaar/VID: Provide Aadhaar or Virtual ID to receive an OTP and complete the e-sign process. Download confirmation: An acknowledgment number will be generated, and a downloadable copy of your migration form will be available. Offline method is also available Alternatively, employees can download Form A2 from fill it out, and submit it to their nodal office for processing.
News18
a day ago
- Politics
- News18
Unified Pension Scheme: Employees Now Eligible For Retirement, Death Gratuity Benefits, Says Minister
Last Updated: Jitendra Singh, the Minister of State for Personnel, says the new provision reflects government's commitment to ensure social security for all categories of employees under NPS. All central government employees part of the Unified Pension Scheme (UPS) will now be eligible for retirement and death gratuity benefits available under the Old Pension Scheme (OPS), Union Minister Jitendra Singh said on Wednesday. Responding to this long-pending demand by a large section of government employees, he said, the move addresses a significant demand of government staff and brings parity in retirement benefits. Singh, the Minister of State for Personnel, said the new provision reflects the government's commitment to ensure social security for all categories of employees under the National Pension System (NPS). Addressing a presser on the 'transformational" journey of the Ministry of Personnel, Public Grievances and Pensions over the last 11 years, he highlighted a series of reforms aimed at simplifying governance, empowering citizens, and humanising administration. Central government employees covered under the UPS will now be eligible for retirement and death gratuity benefits, as per the provisions of the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021, Singh said. The Department of Pension and Pensioners' Welfare (DoPPW), under the Personnel Ministry, on Wednesday issued an order on the 'options to avail benefits under Old Pension Scheme on death of government servant during service or his discharge from government service on account of invalidation or disability for central government servants covered under Unified Pension Scheme". 'The order gives an employee the option to revert to OPS in case of death in service. It is progressive in nature and addresses the clarifications being sought by employees," DoPPW Secretary V Srinivas told PTI. President of the All India NPS Employees Federation, Manjeet Singh Patel, welcomed the order and termed it a historic and much-needed move by the government. Patel said the inclusion of death-cum-retirement gratuity in UPS will remove all the misconceptions of the employees. He said, the inclusion of OPS benefits in case of death or disability of any employee during the service under UPS is a great justice. 'Therefore, a lot of employees will opt for the UPS now," Patel said. The DoPPW had notified the Central Civil Services (Implementation of National Pension System) Rules, 2021, to regulate service-related matters of central government employees covered under the NPS. Under these, Rule 10 provides for the option to be exercised by every central government employee covered under the NPS for availing benefits under the NPS or the Old Pension Scheme in the event of death of a government servant during service or his discharge on the ground of invalidation or disablement. 'UPS has been notified as an option under the NPS. Therefore, it has been decided that the central government civil employees who opt for UPS under the NPS shall also be eligible for option for availing benefits under UPS or the CCS (Pension) Rules, 2021 or the CSS (Extraordinary Pension) Rules, 2023 in the event of death of the government servant during service or his discharge on the ground of invalidation or disablement," the order said. The finance ministry, on January 24, issued a notification regarding the introduction of UPS as an option under the NPS for recruits to the central government civil service with effect from April 1, 2025. It gives a one-time option to the central government employees covered under the NPS for inclusion under the UPS. Every central government servant who opts for the UPS under the National Pension System shall, at the time of joining the service, exercise an option in Form 1 for availing benefits under the UPS or under the CCS (Pension) Rules, 2021 or the CCS (Extraordinary Pension) Rules, 2023 in the event of his/her death or boarding out on account of disablement or retirement on invalidation, the order said. 'Existing government servants, who have opted for the Unified Pension Scheme under the National Pension System, shall also exercise such option as soon as possible after the notification of these clarifications," it said. In the case of the death of a government servant while in service, the last option exercised by the deceased employee before his death shall be treated as final, and the family shall have no right to revise the option, said the order issued to all central government departments. The DoPPW also issued another order on Wednesday to clarify that the central government employees covered under the UPS shall also be eligible for the benefit of retirement gratuity and death gratuity under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021. DoPPW Secretary Srinivas said this order 'brings parity between the NPS and UPS pensioners and they will be eligible for Rs 25 lakh gratuity also". Both these orders were released by Singh during the conference. What Is Unified Pension Scheme? The Union Cabinet in August 2024 approved the Unified Pension Scheme (UPS), for an assured pension post-retirement. The UPS has been implemented from April 1, 2025. The move comes after the long-pending demand of the central government employees to reform the new pension scheme (NPS). It is the latest pension scheme for government employees. Under the UPS, there will be a provision of a fixed assured pension, unlike the New Pension Scheme (NPS) which does not promise a fixed pension amount. The Unified Pension Scheme has five pillars: Assured Pension: Under the UPS, the fixed pension will be 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period up to a minimum of 10 years of service. Assured Family Pension: It will also have an assured family pension, which is 60 per cent of the pension the employee was receiving. It will be given immediately in case of the retiree's demise. Assured Minimum Pension: In the case of superannuation after a minimum 10 years of service, the UPS has a provision of an assured minimum pension of Rs 10,000 per month. Inflation Indexation: There is a provision of indexation benefit on assured pension, on assured family pension and assured minimum pension. top videos View all Gratuity: Lump-sum payment at superannuation in addition to gratuity. It will be 1/10th of the monthly emolument (pay + dearness allowance) as on the date of superannuation for every completed six months of service. This payment will not reduce the quantum of assured pension. (With Inputs from PTI) About the Author Business Desk A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover More Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : National Pension Scheme (NPS) Location : New Delhi, India, India First Published: June 18, 2025, 19:19 IST News business » savings-and-investments Unified Pension Scheme: Employees Now Eligible For Retirement, Death Gratuity Benefits, Says Minister
Time of India
a day ago
- Business
- Time of India
Big shift in retirement policy: Govt announces Old Pension Scheme-like benefits for UPS employees. Check new changes here
Gratuity benefits under new rules Switching from NPS to UPS Minimum pension and family benefits Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Central government employees enrolled under the Unified Pension Scheme UPS ) will now be entitled to retirement and death gratuity benefits, aligning them with those available under the Old Pension Scheme (OPS), Union minister of state for personnel Jitendra Singh said on Wednesday, according to a TOI move addresses a long-standing demand from staff covered under the National Pension System ( NPS ) and is expected to encourage more employees to shift to the UPS, which offers a defined pension Department of Pensions and Pensioners' Welfare has issued an order clarifying that employees under the UPS will be eligible for benefits under the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021. This brings parity in retirement and death gratuity for UPS-covered employees with those under currently under NPS can opt for UPS, which guarantees a fixed monthly pension. The scheme provides 50% of the average basic salary drawn over the last 12 months before retirement, applicable to those with at least 25 years of per the scheme, employees with a minimum of 10 years of service will receive a monthly pension of at least ₹10,000 after retirement. In case of the pensioner's death, the family will be paid 60% of the last pension amount drawn.
