NPS vs OPS vs UPS 2024 : The central government has given its approval to the Unified Pension Scheme i.e. UPS. For information, let us tell you that this is a completely new scheme started by the Modi government. This scheme has been brought in line with NPS i.e. National Pension Scheme.
Therefore, after retirement, government employees will receive pension under either NPS or UPS option. For this, any one option can be chosen by the employees.
Trending Now
If you still do not understand the difference between NPS, OPS and UPS then today this post can help you a lot.
NPS vs OPS vs UPS 2024
Just yesterday on Saturday, the central government has taken a very big decision for all government employees. Under this, the government has taken a decision in the cabinet that the Unified Pension Scheme will be implemented for government employees.
Now it will depend on the government employees which pension scheme they want to avail after retirement. For this, employees will also be given the option to choose either NPS or UPS.
Unified Pension Scheme
The government has announced the implementation of the Unified Pension Scheme. So in such a situation, the question must be coming again and again in the minds of all government employees that what is this scheme. So let us tell you that this is a completely new scheme which will be implemented by the central government on 1 April 2025 next year.
Under this scheme, government employees will get pension up to 50% of their average basic salary of the last 12 months. But through this new scheme, the benefit of pension will be given only to those government employees who have worked for a minimum of 25 years.
What is the difference between NPS, OPS and UPS
NPS, OPS and UPS, these three pension schemes are very beneficial for government employees. But if we separate these three from each other, we get to see some differences such as:-
NPS scheme is linked to the stock market :- NPS pension scheme is a scheme linked to the stock market. Under this scheme, up to 60% of the amount is given to government employees at the time of retirement.
The remaining 40% money is provided in the form of annuity. Therefore Old Pension Scheme and UPS Pension Scheme are more secure than NPS.
Government contribution :- In the Old Pension Scheme, there is no deduction in the salary of government employees. But if we talk about NPS, then pension is given only after deduction of about 10% of the salary.
This 10% cut includes the basic salary and DA of the employees. While the amount in UPS will remain the same, it will also include 18.5% contribution from the government.
Benefits to private and government employees :- Under the UPS Pension Scheme, the Central Government will provide benefits to its employees. To avail the benefits of the scheme through NPS, government and private employees are given the opportunity to open their account.
But if we talk about OPS, then only government employees get the benefit of pension under it.
Fixed pension will be given in UPS :- The central government will provide a fixed pension amount to the employees retiring under the UPS scheme. For this, 50% of the employee’s average salary of 12 months will be given.
Benefit under dearness allowance :- In the Old Pension Scheme, dearness allowance is implemented after 6 months. But in NPS, no dearness allowance is provided to the employees after 6 months.
But if we talk about UPS, then dearness relief allowance will also be provided to the employees on the basis of inflation.
benefit of gratuity :- Under the UPS Pension Scheme, apart from gratuity, central employees will also be given a lump sum amount at the time of retirement.
But in OPS, gratuity of up to Rs 20 lakh is provided after retirement. But if we talk about NPS, the provision of gratuity at the time of retirement is temporary.
Difference between NPS and UPS
- Government employees can choose either of the pension schemes UPS and NPS. Once you choose a pension scheme, you cannot change it.
- The benefit of UPS pension will be given only to government employees. Whereas under NPS two accounts can be opened and investments can also be made in them.
- While UPS is a completely fixed pension scheme in which the family will also get pension, there is nothing like this in NPS.
- UPS is a very safe pension scheme whereas NPS is linked to the stock market which is not safe.
- In NPS, up to 10% of the salary of the employees is deducted. Although this deduction will be made in UPS as well, but the government will also contribute 18.5% in it.
My name is S. Koli, and I am an experienced operator at the Jan Sewa Kendra (CSCs). For the past 7 years, I have been working on online form filling and providing the latest information about government jobs and schemes to the general public. Currently, I am working with platforms like SDSCW-JP and others.
