The notification will give the option to 23 lakh government employees to choose between UPS and NPS, which came into effect on January 1, 2004.The notification added that the rate of full assured payout will be 50% of 12 monthly average basic pay, immediately prior to superannuation subject to a minimum qualifying service of 25 years against a market returns linked payout under the NPS
New Delhi: The Finance Ministry on Saturday (January 25) notified the Unified Pension Scheme (UPS) which promises an assured pension of 50% of the average basic pay drawn over the last 12 months prior to superannuation.
The UPS would be applicable to Central Government employees who are covered under the National Pension System and who choose this option under the National Pension System, according to a gazette notification issued by the Finance Ministry.
UPS or assured payout would not be available in case of removal or dismissal from service or resignation of the employee, as per the notification.
The notification added that the rate of full assured payout will be 50% of 12 monthly average basic pay, immediately prior to superannuation subject to a minimum qualifying service of 25 years against a market returns linked payout under the NPS.
The notification will give the option to 23 lakh government employees to choose between UPS and NPS, which came into effect on January 1, 2004.
In case of a lesser qualifying service period, the proportionate payout would be admissible, it said, adding a minimum guaranteed payout of Rs 10,000 per month shall be assured in case superannuation is after ten years or more of qualifying service.
The effective date for operationalisation of the Unified Pension Scheme would be April 1, 2025.
In cases of voluntary retirement after a minimum 25 years of qualifying service, assured payout will commence from the date on which the employee would have superannuated, if he had continued in service, it said.
“In case of death of the payout holder after superannuation, family payout at the rate of 60% of the payout admissible to the payout holder, immediately before his demise, will be assured to the legally wedded spouse (spouse legally wedded as on the date of superannuation or on the date of voluntary retirement or retirement under FR 56(j), as may be applicable,” it said.
Dearness Relief will be available on the assured payout and family payout, as the case may be, it said, adding, the Dearness Relief will be worked out in the same manner as Dearness Allowance applicable to serving employees.
Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in the case of service employees.