How is Unified Pension Scheme different from Old Pension Scheme? | Explained
In a bonanza to 23 lakh central government employees, the Union Cabinet chaired by Prime Minister Narendra Modi on Saturday approved the Unified Pension Scheme, UPS, which assures guaranteed pension.
Employees opting for UPS would be eligible for an assured pension of 50 per cent of the average basic pay drawn over the last 12 months before the superannuation for a minimum qualifying service of 25 years.
There would be no additional burden on employees opting for UPS. The employee's contribution would remain 10 per cent, while the government contribution would go from 14 per cent to 18.5 per cent.
The new scheme will be applicable from April 1, next year.
Video credit: PTI
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