The Pension Fund Regulatory and Development Authority (PFRDA) has issued new rules for implementing the Unified Pension Scheme (UPS) under the National Pension System (NPS).
The Pension Fund Regulatory and Development Authority (PFRDA) has issued new rules for implementing the Unified Pension Scheme (UPS) under the National Pension System (NPS).
Mumbai: The Pension Fund Regulatory and Development Authority (PFRDA) has issued new rules for implementing the Unified Pension Scheme (UPS) under the National Pension System (NPS). The UPS will allow its subscribers to invest up to 50 per cent of their retirement corpus in equity. The scheme will be introduced from April 1, 2025, as an option to all central government employees who are presently covered under the NPS.
According to the PFRDA (Operationalisation of Unified Pension Scheme Under National Pension System) Regulations, 2025, three categories of central government employees can enroll in the scheme---existing employees already covered under NPS, those joining on or after April 1, 2025 and retired employees (those previously covered under NPS. If the subscriber has passed away before opting for UPS, their legally wedded spouse can enroll.
Those employees who want to opt for UPS will have to apply within three months from April 1, 2025. At the same time, newly recruited employees will have to take this decision within 30 days of their joining. But once UPS is chosen, it cannot be changed.
UPS subscribers will have three investment options---to invest 100 percent of the funds in government securities (Scheme G); or to invest in a conservative Life Cycle Fund with maximum exposure to equity capped at 25 per cent or a moderate Life Cycle Fund with maximum exposure to equity capped at 50 per cent.
Subscribers can change their pension fund manager once in a financial year and investment choice twice in a financial year.
This new scheme, which combines aspects of both the Old Pension Scheme (OPS) and the National Pension System (NPS), aims to provide employees
with a guaranteed pension amounting to 50 per cent of their average basic pay drawn over the last 12 months before retirement. The monthly contribution of the UPS subscriber shall be 10 per cent of the basic pay (including non-practising allowance, where applicable) and dearness allowance thereon, which shall be credited to the individual PRAN of UPS Subscriber. The equal amount will be matched by the government.
The UPS also introduces several additional benefits over NPS. These include an assured minimum pension of Rs 10,000 per month for employees with at least 10 years of service.
Eligible employees can submit their enrolment and claim forms online through the Protean CRA portal (https://npscra.nsdl.co.in) starting April 1, 2025. Alternatively, they can opt for physical submission.
( Source : Deccan Chronicle )
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