Finance Ministry decision: Deadline for choosing options under UPS increased by 3 months, know the new date
The government has extended the last date for choosing options under the Integrated Pension Scheme (UPS) by government employees on Monday for the next three months. Now employees will be able to choose options by 30 September 2025 under the Integrated Pension Scheme. This was announced by the Finance Ministry. According to PTI news, this decision will provide relief to government employees. They will get extra time to make elections.
Decision after request from various stakeholders
According to the news, the Finance Ministry said in a statement that earlier, eligible employees, including the existing employees, retired employees and the deceased retired employees, were given three months till June 30 to choose their option under the scheme. In view of the representations received from various stakeholders to expand, the Center has decided to extend the last date for UPS to three months to September 2025.
Which employees are on UPS
UPS applies to central government employees who fall under the National Pension System (NPS) and who choose this option under the NPS, which came into force on 1 January 2004. Options can be used by 23 lakh government employees to select between UPS and NPS. On August 24, 2024, the Union Cabinet chaired by Prime Minister Narendra Modi approved UPS. Under the Old Pension Scheme, which ended in January 2004, employees used to get 50 percent of their last withdrawals as pension.
UPS will be implemented from this date
The effective date of operating UPS will be April 1, 2025. Unlike the old pension system, UPS is contributable in nature, in which employees will have to contribute 10 percent of their basic salary and dearness allowance, while the employer (central government) contributes 18.5 percent. However, the final payment depends on the market returns on the fund that is mostly invested in government loans.
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