Current Affairs Practice Question›› General Studies ››
Government Schemes
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Unified Pension Scheme (UPS)
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Question 1
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Consider the following statements regarding the Unified Pension Scheme (UPS):
1. The UPS aims to provide a guaranteed monthly pension post-retirement to all subscribers who completed at least 10 years of service.
2. It integrates features of both the National Pension System (NPS) and the Atal Pension Yojana (APY).
3. It is administered by the Pension Fund Regulatory and Development Authority (PFRDA).
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 3 only
Explanation
To promote the Unified Pension Scheme (UPS), the government has recently extended tax benefits to UPS subscribers, similar to those under the National Pension System (NPS).
Statement 1 is correct: The Unified Pension Scheme (UPS) guarantees a minimum assured pension of ₹10,000 per month for eligible Central Government employees who retire after completing at least 10 years of service. For those with 25 years of service, the pension is 50% of the average basic pay of the last 12 months.
Statement 2 is not correct: The Unified Pension Scheme (UPS) is built on the framework of the National Pension System (NPS) but does not formally integrate the Atal Pension Yojana (APY). APY remains a separate scheme aimed at unorganized sector workers and is not structurally merged with UPS. However, UPS borrows the concept of assured returns similar to APY, though it is not a hybrid of the two schemes.
Statement 3 is correct: UPS operates within the existing NPS architecture and is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). PFRDA has notified specific regulations for the operationalization of UPS.
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