Latest news with #NationalPensionSystem
News18
3 days ago
- Business
- News18
Unified Pension Scheme: Retired Govt Employees With Over 10 Years' Service To Get Additional Benefits
Last Updated: The government announces that central government NPS retirees by March 31, 2025, with at least 10 years of service, can claim extra benefits under the UPS. In a major relief for retired central government employees, the central government has said that the central government NPS (National Pension System) subscribers who retired on or before March 31, 2025, with a minimum of 10 years of qualifying service, are now eligible to claim additional benefits under the Unified Pension Scheme (UPS) — over and above the regular NPS benefits they may have already availed. This benefit can also be claimed by the legally wedded spouse of the eligible retiree. 'The Central government NPS subscribers who retired on or before 31/03/2025 with minimum 10 years of qualifying service or their legally wedded spouse can claim the following additional benefits under Unified Pension Scheme (UPS), over and above the NPS benefits already claimed," the finance ministry said in a statement on Friday, May 30, 2025. What Are the Additional Benefits? Eligible retirees will receive a lump sum amount equivalent to one-tenth of their last drawn basic pay plus applicable dearness allowance (DA) for every completed six months of qualifying service. Monthly Top-Up Pension A monthly top-up will be calculated based on the UPS payout combined with dearness relief (DR), after deducting the representative annuity amount already received under NPS. How to Claim the Benefits? Physical Mode: Form B2 for the subscriber Form B4/B6 for the legally wedded spouse Forms can be downloaded from: Online Mode: Visit the same website and fill out the online form for quick processing. Important Deadline The last date to claim the UPS benefits is June 30, 2025. Applicants are advised to apply well before the deadline to avoid last-minute issues. Need Help? For more information, join the official webinar hosted by PFRDA at: Or call the UPS Help Desk (Toll-Free) at 1800 571 2930. The 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. Under the Unified Pension Scheme, the assured payout will be calculated based on the last 12-month salary, months of qualified service, and retirement corpus. First Published:
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Business Standard
3 days ago
- Business
- Business Standard
Centre announces unified pension scheme for retired NPS subscribers
The Union government has rolled out the Unified Pension Scheme (UPS), offering enhanced pension benefits to retired subscribers of the National Pension System (NPS). The scheme applies to those who retired on or before 31 March 2025, with at least 10 years of qualifying service. If the subscriber is deceased, their legally wedded spouse is also eligible to receive these benefits. The UPS provides supplementary benefits in addition to the existing NPS entitlements. These include a one-time lump sum payment, a monthly top-up pension, and interest on any arrears. Under the scheme, eligible retirees will receive a lump sum amount calculated as one-tenth of their last drawn basic pay plus dearness allowance for every completed six-month period of qualifying service. The scheme covers various forms of retirement, including superannuation, voluntary retirement, and retirement under Fundamental Rule (FR) 56(j). If the annuity received under the NPS is lower than the guaranteed pension promised by UPS, the government will pay a monthly top-up to cover the shortfall. Furthermore, beneficiaries can claim arrears along with simple interest, calculated at the prevailing Public Provident Fund (PPF) interest rate. UPS came into effect on 1 April 2025, aiming to bring greater certainty to pension payouts by guaranteeing a fixed monthly pension — thus addressing the inherent variability of NPS returns. For retirees with 25 years or more of qualifying service, the scheme ensures a pension equal to 50 per cent of the average basic pay drawn during the last 12 months of service. The Pension Fund Regulatory and Development Authority (PFRDA) issued the UPS Regulations, 2025, on 19 March, outlining eligibility criteria and the process for claiming benefits. To assist retirees and stakeholders, PFRDA is also conducting webinars and informational sessions on the new scheme.
Business Standard
3 days ago
- Business
- Business Standard
Govt retirees under NPS with 10+ yrs can claim UPS scheme benefits
The central government NPS subscribers who retired on or before March 31, 2025, with a minimum of 10 years of qualifying service or their spouse can claim the additional benefits under the Unified Pension Scheme (UPS). This is over and above the National Pension System (NPS) benefits already claimed, the finance ministry said in a statement on Friday. As per the scheme, the retired employee who opted for UPS would get a lump sum payment (one time) of one-tenth of the last drawn basic pay and dearness allowance thereon, for each completed six months of qualifying service and the monthly top-up amount is calculated based on admissible UPS payout and Dearness relief (DR) minus representative annuity amount under the NPS. Arrears with simple interest as per applicable PPF rates would be also given to retired employees, it said. The last date for making a claim by such employees or their spouses is June 30, 2025, it added. The finance ministry in January notified the Unified Pension Scheme (UPS), which promises an assured pension of 50 per cent 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 the option. As per the notification, the rate of full assured payout will be 50 per cent 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 provided the option to 23 lakh government employees to choose between UPS and NPS, which came into effect on January 1, 2004.
Time of India
3 days ago
- Business
- Time of India
Retired govt NPS subscribers with min 10 years can claim additional benefits under UPS
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The central government NPS subscribers who retired on or before March 31, 2025, with a minimum of 10 years of qualifying service or their spouse can claim the additional benefits under the Unified Pension Scheme (UPS).This is over and above the National Pension System (NPS) benefits already claimed, the finance ministry said in a statement on per the scheme, the retired employee who opted for UPS would get a lump sum payment (one time) of one-tenth of the last drawn basic pay and dearness allowance thereon, for each completed six months of qualifying service and the monthly top-up amount is calculated based on admissible UPS payout and Dearness relief (DR) minus representative annuity amount under the with simple interest as per applicable PPF rates would be also given to retired employees, it last date for making a claim by such employees or their spouses is June 30, 2025, it finance ministry in January notified the Unified Pension Scheme (UPS), which promises an assured pension of 50 per cent of the average basic pay drawn over the last 12 months prior to UPS would be applicable to central government employees who are covered under the National Pension System and who choose the per the notification, the rate of full assured payout will be 50 per cent 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 notification provided the option to 23 lakh government employees to choose between UPS and NPS, which came into effect on January 1, 2004. PTI
India.com
3 days ago
- Business
- India.com
8th Pay Commission Salary Calculations: How will salary be calculated under 8th Pay Commission? Check projected revised pays, HRA & other allowances if fitment factor is…
8th Pay Commission Salary Calculations: How will salary be calculated under 8th Pay Commission? Check projected revised pays, HRA & other allowances if fitment factor is... Salary under 8th Pay Commission: The Central government is soon going to announce the 8th Pay Commission. Once the 8th CPC's recommendations are approved, the employees will start getting the revised salary. The 7th Pay Commission categorised employees' salaries on the basis of the pay matrix, where there are 18 levels. Employees with different ranks and responsibilities come under these basic pay levels. In Levels 4-9, employees such as junior staff, assistants, middle management, and junior officers come. All central employees got a 2.57 fitment factor in the 7th Pay Commission. What if the same fitment factor is applied to the 8th Pay Commission salary structure? What can be projected gross and total salaries, house rent allowance (HRA) and travel allowance (TA), and National Pension System (NPS) and Central Government Health Scheme (CGHS) contributions at a 2.57 fitment factor? We will take the examples of Level 4 (basic pay Rs 25,500), Level 5 (basic pay Rs 29,200), Level 6 (basic pay Rs 35,400), Level 7 (basic pay Rs 44,900), Level 8 (basic pay Rs 47,600), Level 9 (basic pay Rs 53,100) for our calculations. In the 7th Pay Commission, the pay matrix forms the basic pay structure for central government employees. It has 18 levels, 4 pay bands and 15 grade pays. The levels categorise employees based on their ranks and responsibilities. In Level 1-5, entry-level clerks, junior staff, clerks, and assistants come, while in levels 6-9, middle management and junior officers come. In Level 10 onwards, senior rank officers come. Apart from the basic salary, employees get dearness allowance (DA), which is revised twice a year. Other allowances such as HRA, TA, and child education are also added to the salary. Contributions to National Pension System (NPS) are mandatory for employees who joined from January 1, 2004, and onwards, and CGHS are deducted from the salary to form the total salary that the employee gets. The salary is revised on the basis of the fitment factor. The basic salary is multiplied by it to establish the revised basic pay. Allowances are added to it to form the revised salary. For the 6th Pay Commission, the fitment factor was 1.92; for the 7th, it was 2.57. It will be known once 8th Pay Commission recommendations are approved. But it may be anywhere in the range of 1.92-2.86.
