Unified Pension Scheme Calculator for Central Government Employees: A Step Towards Enhanced Pension Benefits
The Pension Fund Regulatory and Development Authority (PFRDA) has launched a new Unified Pension Scheme (UPS) Calculator aimed at assisting central government employees in estimating their pension benefits under both the National Pension System (NPS) and the UPS. This initiative is effective from April 1, 2025, and is designed to provide a more stable and predictable pension payout compared to the market-linked NPS, particularly benefiting new central government employees. Current NPS subscribers also have the option to switch to the UPS if desired.
Key Features of the UPS Calculator:
User-Friendly Interface: The calculator simplifies the process for employees to make informed decisions regarding their pension plans.
Essential Inputs:
- Retirement Age: Users need to enter their expected retirement age to set the timeline for calculations.
- Monthly Basic Pay: The current basic pay must be inputted as it influences contribution amounts.
- Existing NPS Tier 1 Corpus: Current NPS subscribers should provide their existing Tier 1 corpus to account for previous savings.
- Monthly Contribution: Employees can specify their planned monthly contributions until retirement.
Outputs Provided:
- Projected Corpus at Retirement: Estimation of total accumulated funds by retirement age.
- Monthly Pension: Approximate monthly pension under both UPS and NPS based on annuity rates.
- Lump Sum Amount: The amount available for withdrawal at retirement, which differs between the two schemes.
Example Calculation:
For a central government employee aged 44, who joined at 24, with a current basic pay of ₹40,000 and an existing NPS corpus of ₹10 lakh, the following outputs could be expected based on various assumptions:
- UPS Monthly Pension: ₹32,360 + Dearness Relief
- NPS Monthly Pension: ₹29,762
Aggregate Benefits Comparison:
Lump Sum Payout at Superannuation:
- UPS: ₹13,44,160
- NPS: N/A
Final Withdrawal Payout:
- UPS: ₹72,87,263
- NPS: ₹82,41,741
Total Monthly Payouts During Retirement:
- UPS: ₹1,06,52,263
- NPS: ₹71,42,842
Total Expected Benefits:
- UPS: ₹1,92,83,686
- NPS: ₹1,53,84,584
The UPS provides a significantly higher total expected benefit compared to the NPS when all components are aggregated.
Understanding the Unified Pension Scheme (UPS):
The UPS is a fund-based payout system that relies on the regular accumulation and investment of contributions from both employees and the Central Government.
Contribution Rates:
Under the UPS, both the employee and the Central Government contribute 10% of the combined basic pay and Dearness Allowance. Additionally, the Central Government contributes an estimated 8.5% to support assured payouts.
This innovative approach emphasizes long-term financial security for employees, ensuring they have a clear understanding of their retirement benefits through the UPS Calculator.
नोट :- हमारे वेबसाइट www.indiangovtscheme.com पर ऐसी जानकारी रोजाना आती रहती है, तो आप ऐसी ही सरकारी योजनाओं की जानकारी पाने के लिए हमारे वेबसाइट www.indiangovtscheme.com से जुड़े रहे।
