New Delhi, Nov 25: As the last date for Central government employees to opt for the Unified Pension Scheme (UPS) draws near, the Finance Ministry on Tuesday issued a reminder that eligible employees and NPS subscribers can submit requests to nodal officers till November 30 through the Central Recordkeeping Agency (CRA) system or via physical application.
The nodal offices will process all requests in accordance with the prescribed procedure. Key benefits under UPS include the switch option, tax exemptions, resignation and compulsory retirement benefits.
All eligible employees and past retirees of the Central government under NPS are urged to submit their UPS requests on time to avail these benefits, an official statement said. By opting for UPS, employees retain the flexibility to switch back to NPS at a later date, should they choose to exercise it.
The CRA system in the National Pension System (NPS) is the core infrastructure for centralised recordkeeping, administration, and customer service for all NPS subscribers. Authorised by the Pension Fund Regulatory and Development Authority (PFRDA), it is a web-based application that manages subscriber accounts, issues unique Permanent Retirement Account Numbers (PRANs), and serves as the operational interface for all NPS intermediaries.
The UPS offers Central government employees a guaranteed monthly pension, inflation protection (Dearness Relief), and additional benefits like gratuity and lump sum payments, providing a more assured retirement income compared to the market-linked NPS.
Employees with sufficient service can receive a pension that is 50 per cent of their average basic pay under UPS. The scheme assures a minimum monthly payout of Rs 10,000 for eligible individuals upon superannuation.
A surviving spouse is entitled to a percentage of the retiree’s pension for life in cases where the retiree dies. Pensions and family pensions are also adjusted with Dearness Relief to counter inflation.
Besides, retirement and death gratuity benefits are available under existing rules. Contributions are eligible for income tax deductions, and certain withdrawals are tax-exempt. Subscribers can also make limited partial withdrawals during their service for specific needs.
IANS
