UPS offering assured payouts for central govt staffers notified

NEW DELHI: Centre has notified Unified Pension Scheme for central govt employees, offering assured payouts, along with inflation adjustments, to those who complete 25 years or more of service. Employees have been given a one-time option to switch to the UPS, which will come into effect in April. In the 25 year-plus category, the payout will be 50% of the average pay for the last 12 years of service.
Central govt employees covered by the current National Pension System (NPS) and who retire by March 31 can also avail of the benefit of UPS, for which the Pension Fund Regulatory and Development Authority (PFRDA) will separately issue the guidelines. The assured pension scheme, cleared by the cabinet a few months ago, has been notified just ahead of Delhi elections and is meant to tackle criticism regarding assured pension and inflation adjustment, which were cited as reasons by opposition parties to opt out of NPS in some of the states.
UPS offers an assured pension of at least Rs 10,000, plus dearness relief to balance the impact of inflation, to those who put in 10 years of service.
A notification issued by the finance ministry said, “Assured payout shall not be available in case of removal or dismissal from service or resignation of the employee.”