Integrated Pension Scheme (UPS) was announced to give guarantee pension to central employees. Now it is going to start from 1 April 2025. Existing and new recruitment employees can apply to join the scheme. The Pension Fund Regulatory and Development Authority (PFRDA) has issued its notification on Thursday.
Central government employees will be able to apply on the portal from April 1. If the employee wants to get pension under UPS, then they will have to fill the claim form to select the option of UPS. If they do not want to select UPS, then they can choose the option of NPS. Under this, 23 lakh central employees will have to choose one of the UPS and NPS.
Who can apply for UPS?
- The central government employee, which is currently working, means a person living in service till April 1, 2025, who is already under NPS.
- New employees recruited in the service of the Central Government on or after April 1, 2025. They have to choose it within 30 days of joining.
- An employee of the central government who came under NPS and has retired or has voluntarily retirement.
- The legally married spouse who has retired or has died before using UPS option.
How much will there be contribution in UPS?
According to the notification, the monthly contribution of UPS will be ten percent of the basic salary and dearness allowance on it, which will be deposited in the individual PRAN of the UPS customer. Also, the government will also deposit such an amount in Pran. Apart from this, the central government will also provide an estimated 8.5% additional contribution of all employees who choose UPS options (Basic salary + dearness allowance).
The minimum pension under UPS will be Rs 10,000 per month, which will be given by UPS on completing the minimum ten -year service.
Which form has to be filled?
- The current employees can choose UPS after 1 January 2004, employees involved in government service, who have chosen NPS. They have to fill the Form A2.
- The new recruitment employees can also choose this option on or after 1 April 2025 or after the service and they have to fill the Form A1.
- Retired personnel, who have previously retired and have selected the option of NPS, they can also join UPS. They have to submit Form B2 with KYC documents.
- In the event of the employee’s death, the legally married spouse will have to submit Form B6 with KYC documents.
- The provision of 25 years of service will be applicable on taking voluntary retirement (VRS). This means that such employees will have to wait even to complete the age of 60 years.
How to apply
Enrollment and claim form for all categories will be available online on the CRA website (https://npscra.nsdl.co.in). Employees will also have the option to physically submit the form.