In a significant decision benefiting about 23 lakh employees of the Central Government, the Union Cabinet has approved the Unified Pension Scheme (UPS). This scheme provides for Assured Pension and Assured Family Pension, giving employees the choice to opt for either the National Pension Scheme or the UPS. The Assured Pension will be 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation, while Assured Family Pension will be calculated at 60 per cent of the employee's pension before their demise. Additionally, the scheme also includes an Assured Minimum Pension of Rs 10,000 per month after a minimum of 10 years of service. Stay updated with the latest business news, stock market updates, and personal finance coverage through Zee Business's Twitter, Facebook, and YouTube.
Unified Pension Scheme: Empowering Central Government Employees
The Unified Pension Scheme (UPS) is a significant milestone in the pension landscape of India, empowering approximately 23 lakh Central Government employees with enhanced retirement benefits. This comprehensive scheme offers a choice between the National Pension Scheme (NPS) and the UPS, providing employees with the flexibility to tailor their pension plans to their individual needs.
Background of the Unified Pension Scheme
Prior to the implementation of the UPS, Central Government employees were eligible for either the Old Pension Scheme (OPS) or the NPS. The OPS was a defined benefit scheme where pension payments were linked to the last drawn salary, while the NPS was a defined contribution scheme where pension benefits were determined by the amount accumulated in the employee's individual pension account over the course of their career.
Key Features of the Unified Pension Scheme
The UPS provides several key benefits to eligible employees, including:
Choice between NPS and UPS
Employees are given the option to choose between the NPS and the UPS. The NPS is a market-linked scheme where the pension amount is dependent on the performance of the investments made. The UPS, on the other hand, provides guaranteed pension benefits, irrespective of market conditions.
Top 5 FAQs on the Unified Pension Scheme
1. Who is eligible for the UPS? All Central Government employees who joined service on or after 1st January 2004 are eligible for the UPS.
2. Can I switch between the NPS and UPS? No, once the option is made, it cannot be changed.
3. What is the retirement age under the UPS? The retirement age under the UPS is 60 years.
4. Will the UPS affect my existing pension benefits? The UPS will not affect any existing pension benefits accrued by employees prior to the implementation of the scheme.
5. How can I apply for the UPS? Employees can apply for the UPS through their respective government departments.
Conclusion
The Unified Pension Scheme is a progressive step towards ensuring the financial security of Central Government employees during their retirement years. The scheme offers a flexible and comprehensive pension plan, empowering employees with the choice to tailor their retirement savings and benefits to their individual needs. The assured pension and minimum pension provisions provide peace of mind, while the freedom to choose between the NPS and UPS allows employees to optimize their pension returns based on their risk appetite and financial goals.
The stock market saw a sharp decline on Tuesday, with the S&P 500 and Nasdaq Composite falling 0.9% and 1.6%, respectively. This was fueled by a rise in the yield of 10-year Treasurys, indicating concerns about the future of interest rates. The release of strong economic data, including better-than-expected job openings in November, also raised questions about the Fed's decision-making on rates. The tech sector was hit hard, with AI chipmaker Nvidia's stock dropping 5% after hitting an all-time high earlier in the day.
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Standard Glass Lining Technology Ltd. is set to raise Rs 410.05 crore through its initial public offering, which has been subscribed 16.13 times so far on Tuesday. The grey market premium for the IPO currently stands at Rs 93, suggesting a potential 66.43% premium at listing. With an issue price range of Rs 133–140 and a combination of fresh issue and offer for sale, the company has already raised Rs 123 crore from anchor investors and is set to finalise allotment on Jan. 9 with a tentative listing date of Jan. 13.
The stock market saw a sharp decline in the morning hours of trading on Monday, with the Sensex plunging close to 800 points and the Nifty tanking over 250 points. This was attributed to fresh foreign fund outflows and the cautious stance of investors ahead of the upcoming earnings season. The broader markets also traded in the red, with the Nifty Microcap 250 leading the losses and the Nifty Metal and Realty indices dominating in the red. Meanwhile, the global oil benchmark Brent crude saw a slight dip, while the US markets ended on a positive note on Friday.
Microsoft recently faced a bug that led to the suspension of many Microsoft Rewards accounts. The company has acknowledged the issue and provided a fix, but affected users may have to wait a few hours before regaining access. This bug has caused not just inconvenience, but also the loss of reward points for many loyal Microsoft Rewards users. The error message reads "Your Microsoft Rewards account has been suspended" and may seem like a violation of terms and conditions, but Microsoft has clarified that it was only a technical issue. Despite the fix, affected users are rightfully questioning the false suspension and loss of their reward points.
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