Old pension scheme closed in Haryana, UPS notification issued, pension will be half of the basic salary

The Haryana government has decided to implement the Unified Pension Scheme (UPS) in the state. The old pension policy has been scrapped. Government employees will get the option to choose UPS on the lines of the central government. An employee who completes 25 years of service will get 50% of the average basic salary as pension and a minimum pension will also be ensured. The government’s contribution will increase to 18.5%.

Haryana government will implement the Unified Pension Scheme (UPS) in its state on the lines of the Centre. Despite opposition from former Chief Minister Bhupinder Singh Hooda and the opposition leaders and the Old Pension Restoration Struggle Committee, the government is adamant on implementing the Unified Pension Scheme in the state. Rejecting the demand to implement the old pension policy, the Haryana government has issued a notification regarding the decision taken in the cabinet to implement the Unified Pension Scheme.

Employees posted in various government departments in Haryana will now be able to opt for the Unified Pension Scheme (UPS) from August 1 on the lines of central government employees. It will be their choice whether they choose the National Pension System (NPS) or UPS. However, employees of boards-corporations, public sector undertakings and universities will have to wait for UPS.

Additional Chief Secretary of the Finance Department Anurag Rastogi has issued a notification regarding UPS. This will ensure that all government employees get assured pension, family pension and assured minimum pension.

An employee who has completed 25 years of service will get 50 per cent of the average basic pay drawn during the 12 months preceding retirement as pension under UPS. If the employee retires after completing 10 or more years of service, he will be assured of a minimum guaranteed payment of Rs 10,000 per month.

In the event of death of the pensioner, the family will receive 60 per cent of the last drawn pension amount. This dearness relief will apply to both assured pension payment and family pension, which will be calculated on the same basis as dearness allowance applicable to serving employees. Dearness relief will be payable only when pension payment commences.

A lump sum payment will also be allowed at the time of retirement, which will be ten per cent of the monthly emoluments (basic pay dearness allowance) for every completed six months of qualifying service. This lump sum amount will not affect the assured pension payment.

Under the current New Pension Scheme, employees contribute ten per cent, while the State Government contributes 14 per cent. The government’s contribution under UPS will increase to 18.5 per cent.

The fund under the Integrated Pension Scheme will consist of two funds. An individual fund consisting of employee contributions and contributions received from the Haryana Government which will operate as a pool corpus fund funded by additional contributions from the Haryana Government.

Under the scheme, employees will contribute ten per cent of their (basic pay and dearness allowance), with an equal contribution from the Haryana government. Both amounts will be credited to the individual fund of each employee. In addition, the state government will contribute an estimated 8.5% of the (basic pay and dearness allowance) of all employees opting for UPS to the pool corpus on an average basis.

Employees can exercise investment options for their individual corpus, which will be regulated by the Pension Fund Regulatory and Development Authority. If an employee does not specify an investment preference, the default pattern of investment defined by PFRDA will apply.

The investment decisions for the pool corpus funded by additional government contributions will be entirely managed by the Haryana government. For employees who retired before the introduction of UPS and opt for UPS, PFRDA will determine the arrangement for providing top-up amount.

Surrendered pension restored after 15 years of retirement

Rule 95(2) of the Haryana Civil Services (Pension) Rules-2016 has been amended. According to this, the amount of pension surrendered by a government employee at the time of retirement will be restored after completion of 15 years from the date of retirement.

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