WARM GREETINGS OF RAM NAVAMI
“ON THE AUSPICIOUS OCCASION OF RAM NAVAMI, WARM
GREETINGS AND BEST WISHES”
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DIFFERENCE OF UPS FROM OPS AND NPS:
RAJYA SABHA QA
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
RAJYA SABHA
UNSTARRED QUESTION NO. 3440
ANSWERED ON TUESDAY, 01 APRIL, 2025/ 11 CHAITRA, 1947 (SAKA)
DIFFERENCE OF UPS FROM OPS AND NPS
3440. Shri Parimal Nathwani:
Will the Minister of Finance be pleased to state:
(a) the details of how the new Unified Pension Scheme (UPS)
differs from the Old Pension Scheme (OPS) and/or the National Pension Scheme
(NPS);
(b) the details of State Governments who have shown interests to
implement the same in their respective States for their employees; and
(c) whether the Central Government mulls extending additional
financial support etc to the State Governments that adopt the UPS, if so, the
details thereof?
ANSWER
MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) Unified Pension Scheme (UPS) has been notified by the
Government on 24.01.2025, as an option under National Pension System (NPS) with
the objective of providing assured monthly payout after retirement to the Central
Government employees covered under the NPS.
UPS is defined contribution scheme with elements of defined
benefit. It relies on the regular and timely accumulation and investment of
applicable contributions (from both the employee and the employer) for assured
payout to the employees.
The Old Pension Scheme is a defined benefit non-contributory
scheme, fully funded by Government. It is applicable to Central Government
employees who have joined the service on or before 31.12.2003 The National
Pension System (NPS) is a defined contribution-based scheme with market linked
returns for post-retirement benefits. It is applicable to Central Government
employees, except armed forces, who have joined the service on or after
01.01.2004
(b) and (c) The regulation of service conditions of State
Government employees falls under the administrative domain of respective State
Governments.