New Pension rules from April 1: What PFRDA outlines? READ

Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has released new guidelines for the United Pension Scheme (UPS) of the National Pension System (NPS). These new guidelines will become operational from April 1, 2025, and spell out who is eligible and how central government personnel are allowed to opt into the scheme.

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Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has released new guidelines for the United Pension Scheme (UPS) of the National Pension System (NPS). These new guidelines will become operational from April 1, 2025, and spell out who is eligible and how central government personnel are allowed to opt into the scheme.

Who Can Join the Unified Pension Scheme (UPS)?

The scheme provides for three types of central government employees:

  •  Existing Employees – Already registered under NPS as of April 1, 2025. 
  •  New Recruits – Recruited in the central government on or after April 1, 2025.
  • Retired Employees – Previously registered under NPS and retired on or before March 31, 2025, including:

Superannuated employees

  • Voluntary retirees- Retirees under Fundamental Rule 56(j)
  • Spouse Enrollment – In case the subscriber dies prior to making the choice of UPS, his/her legally wedded spouse can make the application.

Government support under UPS

Members will pay 10 per cent of their basic salary under the Unifies Pension Scheme (UPS). This will be the non-practising allowance (if any) plus the dearness allowance. This will be deposited to their Permanent Retirement Account Number (PRAN). The central government shall be matching this contribution by crediting an equivalent amount to the subscriber's PRAN. The government, for guaranteed payouts under the UPS scheme will make an additional contribution of around 8.5 per cent of the aggregate basic pay and dearness allowance.