{"id":121331,"date":"2024-08-25T22:51:03","date_gmt":"2024-08-25T22:51:03","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/08\/25\/ups-vs-nps-vs-ops-how-the-three-pension-schemes-stack-up-against-one-another\/"},"modified":"2024-08-25T22:51:03","modified_gmt":"2024-08-25T22:51:03","slug":"ups-vs-nps-vs-ops-how-the-three-pension-schemes-stack-up-against-one-another","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/08\/25\/ups-vs-nps-vs-ops-how-the-three-pension-schemes-stack-up-against-one-another\/","title":{"rendered":"UPS vs NPS vs OPS: How the three pension schemes stack up against one another"},"content":{"rendered":"<div style=\"text-align:center\"><img loading=\"lazy\" decoding=\"async\" width=\"1280\" height=\"720\" src=\"https:\/\/i3.wp.com\/img.etimg.com\/photo\/msid-112775878,imgsize-57530.cms?resize=1280,720&amp;ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"UPS vs NPS vs OPS: How the three pension schemes stack up against one another\" title=\"UPS vs NPS vs OPS: How the three pension schemes stack up against one another\" \/><\/div>\n<div data-brcount=\"27\">In a major benefit for 23 lakh central government employees, the Modi government has introduced a new <a data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/unified-pension-scheme\" target=\"_blank\" rel=\"noopener\">Unified Pension Scheme<\/a> (UPS), that assures a pension of 50% of the basic salary for those who joined the service after January 1, 2004, under the <a data-ga-onclick=\"Inarticle articleshow link click#News#href\" target=\"_blank\" href=\"https:\/\/economictimes.indiatimes.com\/mf\/nps-national-pension-scheme\" rel=\"noopener\">National Pension System<\/a> (NPS). This new scheme will take effect from April 1, 2025. <a data-ga-onclick=\"Inarticle articleshow link click#News#href\" target=\"_blank\" href=\"https:\/\/economictimes.indiatimes.com\/mf\/nps-national-pension-scheme\" rel=\"noopener\">NPS<\/a> subscribers now have the option to switch to <a data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/ups\" target=\"_blank\" rel=\"noopener\">UPS<\/a>, which provides this <a data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/assured-pension\" target=\"_blank\" rel=\"noopener\">assured pension<\/a> starting from the next financial year.<\/p>\n<p><!--\/article_liveblog.cms?msid=105115637&pos=toppotime:1-->The government&#8217;s plan to transform NPS came against the backdrop of several non-BJP states deciding to revert to the DA-linked Old Pension Scheme (<a data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/ops\" target=\"_blank\" rel=\"noopener\">OPS<\/a>) and employee organisations in some other states raising demand for the same.<\/p>\n<p><em>Here&#8217;s how UPS, NPS, and OPS will stack up;<br \/><\/em><\/p>\n<h2><\/h2>\n<h2>UPS: Unified Pension Scheme<\/h2>\n<p><strong>Assured Pension:<\/strong><\/p>\n<ul>\n<li>50% of the average basic pay drawn over the last 12 months prior to superannuation.<\/li>\n<li>Applicable for a minimum qualifying service of 25 years.<\/li>\n<li>Proportional for service periods between 10 and 25 years.<\/li>\n<\/ul>\n<p><strong>Assured <a data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/family-pension\" target=\"_blank\" rel=\"noopener\">Family Pension<\/a>:<\/strong><\/p>\n<ul>\n<li>60% of the employee&#8217;s pension immediately before their demise.<\/li>\n<\/ul>\n<p><strong>Assured Minimum Pension:<\/strong><\/p>\n<ul>\n<li>Rs 10,000 per month upon superannuation after a minimum of 10 years of service.<\/li>\n<\/ul>\n<p><strong>Inflation Indexation:<\/strong><\/p>\n<ul>\n<li>Applied to assured pension, assured family pension, and assured minimum pension.<\/li>\n<\/ul>\n<p><strong>Dearness Relief:<\/strong><\/p>\n<ul>\n<li>Based on All India Consumer Price Index for Industrial Workers (AICPI-IW), similar to service employees.<\/li>\n<\/ul>\n<p><strong>Lump Sum Payment at Superannuation:<\/strong><\/p>\n<ul>\n<li>1\/10th of monthly emoluments (pay + DA) for every completed six months of service.<\/li>\n<li>This lump sum payment is in addition to gratuity and does not affect the assured pension amount.<\/li>\n<\/ul>\n<h2>NPS: National Pension Scheme<\/h2>\n<ol>\n<li>NPS promised pensions based on the contributions made by employees and the government.<\/li>\n<li>It required a 10-per cent contribution from the central government employee&#8217;s basic salary and 14 per cent contribution from the government.<\/li>\n<li>In, UPS the employee&#8217;s contribution would remain 10 per cent, while the government contribution would increase to 18.5 per cent.<\/li>\n<\/ol>\n<p>The pension amount is not fixed in NPS as it is a market-linked scheme and is subject to market movements. The UPS provides an assured pension, which is 50% of the salary for those who joined the service after January 1, 2004.<\/p>\n<p>The family pension under NPS depended on the accumulated corpus in the pension fund and the annuity plan chosen at retirement.<\/p>\n<ul>\n<li><strong>For govt and private employees<\/strong><\/li>\n<\/ul>\n<p>NPS has been implemented for all government employees except those in the armed forces joining the central government on or after January 1, 2004. It is also available for private-sector employees.Most state\/Union Territory governments have also notified NPS of their new employees. If the state government joins UPS, they would bear the additional burden for those employees for the assured pension. <\/p>\n<h2>Old Pension Scheme<\/h2>\n<ul>\n<li>In OPS retired government employees received 50 per cent of their last drawn salary as monthly pensions.<\/li>\n<li>The amount keeps increasing with the hike in the DA rates. <\/li>\n<li>Employees were entitled to a gratuity payment of a maximum of Rs 20 lakh on retirement<\/li>\n<li>In cases if a retired employee passes away, their family receives continued pension benefits<\/li>\n<li>Also no deductions are made from an employee salary towards pensions contributions under OPS unlike NPS<\/li>\n<li>States like Himachal Pradesh, Rajasthan, Chhattisgarh, and Punjab have reverted to the <a data-ga-onclick=\"Inarticle articleshow link click#News#href\" href=\"https:\/\/economictimes.indiatimes.com\/topic\/old-pensions-scheme\" target=\"_blank\" rel=\"noopener\">Old Pensions Scheme<\/a> (OPS).<\/li>\n<\/ul>\n<p><!--\/article_liveblog.cms?msid=105115637&pos=botpotime:2--><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/economictimes.indiatimes.com\/news\/india\/ups-vs-nps-vs-ops-new-unified-pension-scheme-with-50-assured-pension-family-pension-and-more\/articleshow\/112775878.cms\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a major benefit for 23 lakh central government employees, the Modi government has introduced a new Unified Pension Scheme (UPS), that assures a pension of 50% of the basic salary for those who joined the service after January 1, 2004, under the National Pension System (NPS). This new scheme will take effect from April [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":121332,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/msid-112775878,imgsize-57530.cms","fifu_image_alt":"","footnotes":""},"categories":[602],"tags":[98299,98366,15550,15548,98697,12345,7472,5207,77828,98281,7582],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/121331"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=121331"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/121331\/revisions"}],"predecessor-version":[{"id":121333,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/121331\/revisions\/121333"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/121332"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=121331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=121331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=121331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}