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The last date to switch to the Unified Pension Scheme is now very near. For government employees, this can prove to be the biggest option among the schemes. The Finance Ministry has appealed to the eligible employees to apply on time.
New Delhi. The last date for switching to Unified Pension Scheme (UPS) has been fixed as 30th November and due to this, the activity regarding applications among the eligible government employees has increased. The Finance Ministry has made it clear that the employees who want to switch from NPS to UPS can complete this process either through the Central Recordkeeping Agency (CRA) system or by submitting physical forms. According to the ministry, nodal officers will process all requests under the prescribed guidelines so that all eligible persons can get the benefits of the scheme on time.
Switch options and tax benefits are attractive
In an official statement issued by the government, it has been said that the main attractions of UPS include the option to switch, tax exemption, benefits after resignation and mandatory retirement benefits. This is the reason why current and former employees involved in NPS are showing great curiosity about this scheme. The Finance Ministry said that after the notification of January 24, 2025, awareness about this scheme has been spread on a wide scale, so that no eligible person is deprived of the benefits. The special thing is that even after choosing UPS, the employees can return to NPS if they wish in future.
CRA system provides convenient process
The CRA is a vital pillar of the National Pension System, providing the focal point for recordkeeping, administration and customer service for millions of subscribers. This platform, authorized by PFRDA, is completely web-based, which includes pension account management, issuance of PRAN number and operation of various intermediaries. The process of switching to UPS has been simplified through this system so that employees can apply without any technical hindrance. According to the ministry, this technical infrastructure provides timely and accurate data, due to which pension related formalities are easily completed.
50% salary pension and guarantee of Rs 10,000
The biggest advantage of the Unified Pension Scheme is considered to be its pension formula, in which employees with sufficient service will be given a monthly pension equal to 50 percent of their average basic salary. Also, the guarantee of minimum Rs 10,000 per month makes it more attractive. Limited partial withdrawal facility also exists under this scheme, although this will be applicable only in special circumstances. According to experts, this scheme strengthens financial security after retirement and assures employees of stable income. As the last date is nearing, the government has again requested that the eligible employees should apply on time and ensure the benefits.
