New Delhi. The year 2025 has brought many changes for central employees. The most important changes are related to the Unified Pension Scheme (UPS). Now all the central employees included in UPS will be eligible for retirement and death gratuity benefits under the Old Pension Scheme (OPS).
1. Gratuity benefits like OPS in UPS
Central employees included in UPS (Unified Pension Scheme) in the year 2025 will now be eligible for retirement and death gratuity benefits under the Old Pension Scheme (OPS). If an employee dies while in service, the family will get benefits as per OPS.
2. Options for Disabled or Disabled Employees
Employees included in UPS will now have the right to choose OPS like security of their choice. This means that employees can opt for secure and assured benefits even if they are disabled or handicapped.
3. New Investment Options: Life Cycle and Balanced Life Cycle
The Central Government has approved two new investment options under NPS and UPS. In the Life Cycle option, the ratio of equity and safe investments is fixed according to age, while the Balanced Life Cycle option promotes equity investments for a longer period.
4. Equity investment limits
The life cycle options have different options – LC-25, LC-50 and LC-75, with maximum equity allocation of 25%, 50% and 75% respectively. In the Balanced Life Cycle option, equity investment remains high till the age of 45, ensuring long-term benefits.
5. Safe and default options also available
UPS has a default option, in which the amount is invested as per the investment pattern decided by PFRDA. Additionally, there is also the Scheme-G option, in which 100% of the amount is invested in safe government securities, which ensures low risk and fixed returns.
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