Government Launches UPS-NPS Pension Calculator for Central Employees
New Pension Calculator Launched for Central Government Employees
If you’re a central government employee, this news is for you. The central government has launched a Unified Pension Scheme (UPS) Calculator for its employees. This tool allows employees to estimate their future pension benefits. Using key inputs like retirement age, monthly basic salary, monthly contributions, and current NPS corpus, employees can compare projected benefits under both the National Pension System (NPS) and the new Unified Pension Scheme (UPS).
Calculator Supports Both UPS and NPS
The Department of Financial Services, under the Ministry of Finance, announced on social media platform X that the NPS Trust has introduced the UPS calculator. This tool helps both NPS and UPS pension holders estimate their pension amounts. It enables users to make informed decisions by accurately calculating the benefits of each pension scheme.
UPS Effective from April 1, 2025
The central government recently introduced the Unified Pension Scheme (UPS), which will be effective from April 1, 2025. This scheme aims to provide a more stable and predictable pension compared to NPS for new central government recruits. Additionally, current NPS beneficiaries will have the option to switch to the UPS.
Key Features of UPS
The UPS guarantees a fixed pension, unlike the NPS which is market-linked and subject to fluctuations. The scheme ensures a monthly pension of ₹10,000 after 10 years of service upon retirement. Moreover, a central government employee serving for 25 years will receive 50% of the average of their last 12 months’ salary as pension.Employees under UPS are required to contribute 10% of their basic salary and dearness allowance, while the central government contributes 18.5%—highlighting the scheme’s goal of offering financial security post-retirement.
