Latest news with #UnifiedPensionScheme
Hindustan Times
2 days ago
- Business
- Hindustan Times
Haryana gives nod to Unified Pension Scheme
Jun 27, 2025 09:34 AM IST The council of ministers on Thursday gave nod to adopt the Unified Pension Scheme (UPS) with effect from August 1, 2025 and the decision is expected to benefit over two lakh state government employees appointed on or after January 1, 2006. The UPS, introduced under the National Pension System (NPS), aims to provide assured minimum pension and family pension. (HT File) The UPS, introduced under the National Pension System (NPS), aims to provide assured minimum pension and family pension. Eligible employees completing 25 years of service will receive 50% of the average basic pay of the last 12 months before retirement. A minimum guaranteed pension of ₹ 10,000 per month is assured for those with at least 10 years of service. In case of the pensioner's death, the family will receive 60% of the last-drawn pension. Dearness Relief (DR), calculated on the same lines as DA for serving employees, will apply once pension payments begin. A one-time lump sum of 10% of monthly emoluments for every completed six months of service will be paid at superannuation, without affecting the pension. Employee contributions will remain at 10%, while the state will contribute 18.5%—with 10% credited to the individual corpus and 8.5% to a common pool to support assured benefits. The scheme is estimated to cost ₹ 600 crore annually. Existing and future employees can choose between the UPS under NPS or continue with the current NPS structure.
Time of India
3 days ago
- Business
- Time of India
Haryana cabinet okays Unified Pension Scheme, aims to cove 2.1L employees
Chandigarh: The Haryana cabinet on Thursday announced the implementation of Unified Pension Scheme (UPS) from Aug 1, a move that will go against state govt employees who had been demanding the reinstatement of the Old Pension Scheme (OPS). Tired of too many ads? go ad free now Now, govt employees who joined service after 2006 can opt out of either UPS or National Pension Scheme (NPS), which is prevalent in Haryana. However, there will be no scope for OPS. The decision on pension was among the 33 agenda items taken up by CM Nayab Singh Saini's cabinet during a four-hour meeting. The cabinet also approved pension benefits-related amendments to Haryana Civil Services Rules 2016 and increased the facilitation of housing for the kin of deceased govt employees occupying govt accommodation. Over 2.15 lakh employees will be covered under UPS. UPS will provide 50% of the average basic pay drawn by a state govt employee during the 12 months prior to retirement, provided the employee completes 25 years of service. A minimum guaranteed payout of Rs 10,000 per month will be assured if the employee retires after completing 10 or more years of qualifying service. In the event of the pensioner's death, the family will receive 60% of the last-drawn pension amount. Dearness relief will be applicable to both the assured pension payout and the family pension, calculated in the same manner as dearness allowance (DA). However, dearness relief will be payable only once the pension payout commences. A lumpsum payment will also be allowed at the time of superannuation, amounting to 10% of the monthly emoluments (a sum of basic pay and DA) for every completed six months of qualifying service. Tired of too many ads? go ad free now This lumpsum will not affect the assured pension payout. Once an employee opts for UPS, all terms and conditions of the scheme will be deemed accepted, and this choice will be final. The decision regarding the implementation of UPS in boards, corporations, PSUs and state universities will be taken later, said the CM. Pension Bahali Sangharsh Samiti Haryana president Vijender Dhariwal, who has been spearheading protests for the implementation of OPS, termed the decision futile. "UPS had few takers in the Union govt, and the state govt had to extend the date till Sep. Now, we don't think it will be accepted by employees in Haryana too," he said. OTHER DECISIONS More casual leaves for women | The cabinet approved amendments to Haryana Civil Services (Leave) Rules, 2016, increasing casual leaves for regular woman employees in govt departments, boards and corporations from the previous 20 per calendar year to 25 Changes in treasury officer recruitment rules |The cabinet approved amendments to Haryana Finance Department Treasuries (Group B) Service Rules, 1980. Now, only 25% posts of assistant treasury officer (ATO) will be filled through promotion, down from the earlier 50%. The remaining 75% will be recruited directly by Haryana Public Service Commission (HPSC) Relaxation in job policy for kin of battle casualties | The cabinet approved a significant relaxation in the policy for compassionate appointments given to the dependents of Haryana-domicile battle casualties. The decision will pave the way for compassionate appointments in eight cases where the families had applied after the mandatory three-year period Scholarship for children of fallen soldiers, paramilitary personnel | Students of fallen soldiers and paramilitary personnel will receive an annual scholarship ranging from Rs 60,000 to Rs 96,000, according to a decision by the cabinet. As per the new policy inspired by PM Scholarship Scheme, students from Class VI to XII will receive an annual scholarship of Rs 60,000. For those pursuing graduation, the scholarship will be Rs 72,000 per year, while post-graduate students will receive Rs 96,000 annually. IN all, 189 students will get Rs 1,31,640 as scholarship Royalty on mining material doubled | The cabinet also approved amendments to Haryana Minor Mineral Concession, Stocking, Transportation of Minerals, and Prevention of Illegal Mining Rules, 2012. As a result, the process for providing compensation and rent to farmers has been simplified to ensure greater ease and transparency. In addition, royalty for stone and sand have been revised. Royalty for stone has been increased from Rs 45 to Rs 100 per tonne, while the royalty for sand has been raised from Rs 40 to Rs 80 per tonne. Cabinet has also approved the implementation of an inter-state mineral transportation fee. A charge of Rs 100 per tonne will be levied for inter-state transportation of minerals. The inter-state transit fee has been fixed at Rs 100 if the destination mentioned in the e-transit is within Haryana, and Rs 20 if the destination in e-transit is any place outside Haryana. MSID:: 122093963 413 |
Indian Express
3 days ago
- Business
- Indian Express
Haryana clears Unified Pension Scheme with 50% assured payout for govt staff
The Haryana Cabinet on Thursday approved the adoption of the Unified Pension Scheme (UPS) under the National Pension System (NPS), offering state government employees an assured monthly pension of 50% of their average basic pay at retirement — a major reform expected to benefit over 2 lakh employees appointed on or after January 1, 2006. Cleared at a Cabinet meeting chaired by Chief Minister Nayab Singh Saini, the scheme will come into effect from August 1, 2025. Officials said the decision aligns with the central government's UPS notification under NPS and aims to provide financial security post-retirement to state employees. Under the scheme, employees retiring after at least 25 years of service will be eligible for a pension equal to 50% of the average basic pay drawn in the final 12 months of service. A minimum assured pension of ₹10,000 per month will be extended to those with 10 or more years of qualifying service. In case of the pensioner's death, the family will receive 60% of the last drawn pension. Dearness Relief (DR), calculated like the Dearness Allowance (DA) for serving staff, will apply to both assured and family pensions — but only after pension payouts begin. Employees will also receive a lump sum at retirement: 10% of their monthly emoluments (Basic Pay plus DA) for every completed six months of service. This one-time payment will not affect their pension entitlement. With the implementation of UPS, the state's contribution to employee pensions will rise from 14% to 18.5%, pushing the government's monthly expenditure to approximately ₹50 crore and annual costs to ₹600 crore. The pension fund will be split into two components: an individual corpus and a pool corpus. The individual corpus will consist of the employee's 10% contribution matched by an equal 10% from the state, deposited into personal accounts. The pool corpus will be funded by an additional 8.5% contribution by the government and used to support the assured pension payouts. While employees can choose how their individual corpus is invested, subject to Pension Fund Regulatory and Development Authority (PFRDA) rules, the investment of the pool corpus will be decided by the Haryana government. If no preference is indicated, the default investment pattern defined by PFRDA will apply. For employees who retired before the scheme's implementation but opt in, the PFRDA will work out the mechanism for top-up payments. All existing government employees under the NPS and future hires will be allowed to choose between continuing under NPS or switching to UPS. However, once an employee selects UPS, the choice will be binding. A separate decision will be taken later regarding the extension of UPS to Boards, Corporations, Public Sector Undertakings (PSUs), and State Universities. The Centre had cleared the UPS for central government employees in January this year, following the Union Finance Ministry's nod in August 2023. It applies to those who joined on or after January 1, 2004. Sukhbir Siwach's extensive and in-depth coverage of farmer agitation against three farm laws during 2020-21 drew widespread attention. ... Read More
Time of India
4 days ago
- Business
- Time of India
UPS vs NPS calculation: Still undecided? Here are numbers to help you decide correctly before new deadline of September 30, 2025
UPS Calculator: NPS VS UPS calculations Date of birth of employee: January 1, 1980 Date of joining of employee: January 1, 2005 Retirement age: 60 years Qualifying service: 35 years Current monthly basic pay: Rs 35,000 Existing Tier I NPS corpus today: Rs 12 lakh Annual Basic Pay growth: 2% Annual Dearness Allowance Growth: 6% Expectation of return on investment: 10% Final Withdrawal%: 60% Annuity rate: 6% Life expectancy: 90 years Spouse life expectancy: 90 years UPS vs NPS UPS NPS UPS admissible payout (monthly) Rs 23,388 + DR Rs 25,070 Lumpsum payout Rs 10,58,643 NA Final withdrawal payout at Superannuation Rs 67,50,640 Rs 75,20,989 Total monthly payouts to retiree in retirement phase (In UPS) Rs 1,81,86,820 Rs 90,25,187 Pros and Cons of UPS for Central Government Employees Benefits under UPS Cons of UPS for Central Government Employees Pros and Cons of NPS for Central Government employees Pros under NPS for Central Government employees Cons under NPS for government employees The last date to apply for pension under the Unified Pension Scheme (UPS) is September 30, 2025. This cutoff is for central government employees who are still working and are covered under the National Pension System (NPS), along with those government employees who retired on or before March 31, 2025, provided they meet specific there are still some central government employees who are yet to decide whether UPS is better than NPS. This decision is significant, as this switch can be exercised only once in the lifetime of a central government employee and cannot be reversed. ET Wealth online has done some number crunching to help you decide the better have used the UPS calculator released by the PFRDA. To make the calculations, we have made certain assumptions, which are as follows:According to the UPS calculator, the payout after retirement will be as follows:Source: PFRDA UPS calculatorAccording to the table above, the monthly payout is initially higher for the NPS. However, as the dearness relief is hiked by the government, the payout for the UPS retirees will also UPS Pension CalculatorApart from numbers, the central government employees should also know the pros and cons of the pension scheme under UPS to decide.1. UPS aims to provide guaranteed pension payouts after retirement. According to the pension scheme rules, a central government employee will receive 50% of their average pay for the last 12 months as pension, provided they have worked for 25 years or more.2. A pension of Rs 10,000 per month is payable after a minimum service of 10 years. If the service years are between 10 years and 25 years, then the pension payout will be proportional to the years of service.3. Pension under UPS will be indexed to inflation, via dearness relief.4. There is a higher government contribution to UPS as compared to NPS. Under the UPS, the government contributes 18.5% in total, where 10% goes to the employee's account and 8.5% goes to a separate pooled fund.5. UPS provides a one-time lump sum payment equal to one-tenth of the last drawn basic salary plus dearness allowance, for each completed six months of qualifying service. Along with this lump sum, an employee will also be eligible for gratuity.1. Even though UPS has a higher government contribution, only 10% is deposited into the employee's pension account. The additional 8.5% is deposited into the pool corpus, which is made to enhance the stability and sustainability of the entire pension scheme. This portion will not be paid to the subscriber on maturity.2. A central government employee may need to fund the deficit to be eligible for the 50% assured payout if the UPS benchmark corpus falls short. Benchmark corpus is a notional value that acts a reference point for evaluating whether the government employee's total accumulated corpus at the time of retirement is sufficient. It is important to note that surplus money will be refunded if it exceeds the benchmark corpus.3. The government employee may not gain better pension if the qualifying service is less than 25 years but more than 10 years. Also, any service period beyond 25 years is effectively ignored for payout benefits.4. In UPS, a retiree can receive the payout benefits only after reaching the superannuation age. If voluntarily retired, he/she must wait till superannuation age to get the benefits.5. Legal heirs of a central government employee will not get full benefits in UPS. In case of early demise, spouse will get 60% of guaranteed sum.1. The government's contribution of 14% of employees' basic pay is directly deposited to the pension account along with 10% individual's contribution.2. NPS allows a greater degree of choice, control, and flexibility in investments and withdrawals. UPS subscribers can choose from three pension fund managers whereas NPS subscribers are allowed to choose from ten pension fund managers.3. NPS allows government employees to invest for longer period and defer withdrawals. Both lump sum withdrawals and annuity payouts can be deferred under the NPS.4. Central government employees can do systematic withdrawals from the accumulated corpus instead of taking a lump-sum payout.5. Even though both UPS and NPS allow withdrawal of 60% of the total corpus on superannuation. However, there is no clarity on whether a UPS lump-sum withdrawal is also exempt as an NPS withdrawal.6. A central government employee can claim a deduction on the employer's contribution to the NPS account under both the tax regimes (old and new). No such deduction is offered on the employer's UPS contribution.1. Under NPS, there is no assured pension payout. The pension is dependent on the accumulated corpus, the percentage of corpus used for annuity and the prevailing annuity rates.2. There is no inflation adjustment of the pension under the NPS.3. No additional lump sum is provided to the subscriber beyond the accumulated retirement corpus.
Time of India
6 days ago
- Business
- Time of India
Only a small proportion of central government staff opts for UPS, deadline extended by 3 months
Unified Pension Scheme NEW DELHI: After a campaign for assured pension, there is only a small proportion of central govt employees who have opted for the Unified Pension Scheme , offering assured 50 per cent pension, with several seeking further clarifications to exercise the one-time option. As a result, govt has extended the June-end deadline by three months. Employees want to be absolutely sure about the terms of the agreement before deciding to switch to UPS. A concern for employees who joined national pension system from 2004 is the lack of clarity on death benefits. While an assurance was given last week, there are still a few issues that are to be resolved. Under the UPS, while an employee will contribute 10 per cent of his or her salary towards pension, a matching contribution will be made by the Centre, which was 14 per cent under NPS. Under the new scheme, apart from the 10 per cent pension payment, another 8.5 per cent contribution is to be made by the Centre which will not reflect in the balance of the subscriber's account. While most employees understand the change, there are some who believe that the payout may be lower. Further, some of the all India service officers want to know about the difference in contribution between the Centre and states, which don't have a scheme yet. An IAS, IPS or Indian Forest Service officer spends time in the state with some of them also opting for central deputation. While the rules are quite clear, some of the officers have raised doubts. Meanwhile, fund managers, who have been asked to conduct outreach programmes, are smelling a rat and allege that some private players are sowing doubts as they stand to lose out on the annuity business under UPS. Employees now have time to exercise the switching option up to the end of September. The option can be exercised by 23 lakh government employees.
