Latest news with #NationalPensionSystem
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:
&w=3840&q=100)
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.
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.
Time of India
a day ago
- Business
- Time of India
Unified pension scheme revised: Central employees to receive OPS-like gratuity; Rs 10k minimum pension
Representative image NEW DELHI: All Central government employees covered under the Unified Pension Scheme (UPS) will receive retirement and death gratuity benefits similar to the Old Pension Scheme (OPS), Union minister of state for personnel Jitendra Singh said on Wednesday. The inclusion of death-cum-retirement gratuity in UPS, a long-pending demand of a large section of Central government staffers, is expected to encourage many covered under National Pension System (NPS) to opt for it. Singh, who was addressing a press conference in Delhi on the 'transformational' journey of ministry of personnel, public grievances and pensions over the last 11 years, said the assured payout under UPS 'reflects the government's commitment to ensure social security for all categories of employees under the NPS'. The department of financial services had notified UPS on January 24, 2025, with the aim of providing Central government employees covered under NPS, a guaranteed pension similar to OPS but with a contribution model like NPS. Employees covered under NPS can switch to UPS, ensuring broader pension coverage. The scheme guarantees a pension amount of 50 per cent of the average basic salary earned over 12 months before retirement for those with at least 25 years of service. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Memperdagangkan CFD Emas dengan salah satu spread terendah? IC Markets Mendaftar Undo Additionally, employees with a minimum of 10 years of service are entitled to a minimum pension of Rs 10,000 per month upon superannuation. In the event of the pensioner's death, their family will receive 60 per cent of the last pension drawn. Employees contribute 10% of their basic salary and DA, while the government contributes 18.5 per cent, a higher share than 14 per cent under NPS. An order issued by the department of pensions and pensioners' welfare (DoPPW) on Wednesday clarified that 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. A second order specified options to avail benefits under OPS on death of a government servant covered under UPS, during service or his discharge from service on account of invalidation or disability. 'The order gives an 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 said, adding that 'UPS pensioners will be eligible for Rs 25 lakh gratuity also'. President of the All India NPS Employees Federation, Manjeet Singh Patel, welcomed the order, saying that the inclusion of death-cum-retirement gratuity in UPS will remove all the misconceptions of the employees and encourage them to opt for UPS, said PTI. 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.
Time of India
2 days ago
- Business
- Time of India
OPS-like benefits for central government staff under Unified Pension Scheme
(AI image) NEW DELHI: Central govt employees covered under the Unified Pension Scheme (UPS) will receive retirement and death gratuity benefits similar to the Old Pension Scheme (OPS), Union minister of state for personnel Jitendra Singh said Wednesday, reports Bharti Jain. The inclusion of death-cum-retirement gratuity in UPS, a long-pending demand, is expected to encourage many covered under the National Pension System (NPS) to opt for it. In an order, dept of pensions and pensioners' welfare clarified that employees covered under UPS will also be eligible for the benefit of retirement and death gratuity under the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021. Employees covered under NPS can switch to UPS, ensuring broader pension coverage. The scheme guarantees a pension amount of 50% of the average basic salary earned over 12 months before retirement for those with at least 25 years of service. In addition, employees with a minimum of 10 years of service are entitled to a minimum pension of Rs 10,000 a month upon superannuation. In the event of a pensioner's death, the family will receive 60% of the last pension drawn.
