Outlook Money
UPS is a central government scheme that offers eligible employees with pension. With this scheme, a guaranteed pension of 50 per cent of the last 12 months' average basic pay at the time of retirement is provided.
Employees who have been under the NPS are eligible for the scheme. In addition, employees with 25 years of service or more can opt for this scheme.
UPS is a middle path between NPS and OPS. UPS tries to merge the pension concepts of both schemes by ensuring a minimum pension without leaving any residual market-driven contribution.
UPS has been introduced now as there were demands for assured pensions, financial viability and reduced market risk to pensioners.
Before taking up the scheme, employees should consider their risk tolerance, service tenure and financial needs.