Crucial Announcement for UPS Subscribers from Central Government
Central government employees who choose the Unified Pension Scheme (UPS) will now enjoy retirement and death gratuity benefits similar to those provided under the Old Pension Scheme (OPS). This significant announcement was made by Union Minister of State for Personnel Jitendra Singh, who emphasized that this decision fulfills a crucial demand from government workers. The directive, issued by the Department of Pension and Pensioners’ Welfare (DoPPW), aims to ensure equitable retirement benefits across different pension schemes.
Details of the New Benefits
The recent directive from the DoPPW confirms that central government employees enrolled in the UPS will be eligible for retirement and death gratuity benefits as outlined in the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021. This change is particularly important for employees who may face service-related deaths or disabilities. According to the new rules, if a government employee dies while in service, their family will be entitled to the benefits that were previously available under the OPS. This provision aims to provide clarity and security for employees and their families during challenging times.
DoPPW Secretary V Srinivas highlighted that this order is progressive and addresses the concerns raised by employees regarding their retirement benefits. The directive allows employees to revert to the OPS in the event of a service-related death, ensuring that they receive fair treatment. This move is expected to encourage more employees to opt for the UPS, as it alleviates uncertainties regarding their benefits.
Implementation of the Unified Pension Scheme
The UPS was introduced as an alternative under the National Pension System (NPS) following a notification from the Ministry of Finance on January 24, 2023. This scheme is set to take effect from April 1, 2025, and provides central government employees with a single opportunity to choose between UPS and the existing pension schemes. Employees must submit Form 1 upon joining service, allowing them to select benefits under either the UPS or the CCS (Pension) Rules, 2021, or the CCS (Extraordinary Pension) Rules, 2023.
The new rules also stipulate that existing government employees who have opted for the UPS must exercise their options promptly following the notification of these clarifications. The order has been disseminated to all central government departments, ensuring that employees are informed about their choices and the implications of their decisions regarding pension benefits.
Reactions from Employee Unions
The announcement has been met with enthusiasm from employee unions, particularly the All India NPS Employees Federation. President Manjeet Singh Patel expressed that the inclusion of death-cum-retirement gratuity into the UPS is a significant and necessary step by the government. Patel noted that this change will eliminate uncertainties for employees, making the UPS a more attractive option. He emphasized that the provision for OPS benefits for those facing death or disability during service under the UPS reflects fair treatment for all employees.
The new directive is expected to enhance the appeal of the UPS among central government workers. With the assurance of retirement and death gratuity benefits, many employees may now consider opting for the UPS, leading to a potential shift in the pension scheme landscape for government employees.
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