Pension Scheme 2025: These days, there is a lot of talk regarding the Pension Scheme 2025. Significant adjustments have recently been made by the Indian government to programs including the Unified Pension Scheme (UPS) and the Employees’ Pension Scheme (EPS). Better pension benefits for workers in the public and commercial sectors are the primary goal of these reforms. We will go into great depth about these programs in this post and attempt to determine whether pensions can be obtained at age 50.
The minimum pension in EPS-95 would rise to ₹7,500 under the Pension Scheme 2025, which is significantly more than the present ₹1,000. In addition, the Unified Pension Scheme (UPS), which offers central government employees a structured pension plan, was introduced. Employees will get a pension under this plan equal to 50% of their average base pay for the previous 12 months of employment.
Pension Scheme 2025: Overview of the Pension Plan for 2025
Pension Scheme 2025
Name of the scheme
Description
EPS-95
This scheme provides regular pension to the employees after retirement. The minimum amount of pension can be ₹7,500.
Unified Pension Scheme (UPS)
This scheme is for Central Government employees, which provides them pension of 50% of the average basic pay of the last 12 months of service.
Eligibility Criteria
EPS-95 requires a minimum of 10 years of service, while UPS offers a minimum pension of ₹10,000 with 10 years of service.
Pension Payments
Pension under EPS-95 can be received from any bank branch, while UPS will also have similar facility.
Minimum pension amount
₹7,500 in EPS-95 and ₹10,000 per month in UPS.
Family Pension
Pension under EPS-95 can be received from any bank branch, while UPS will also have a similar facility.
Benefit
Both the schemes provide financial security after retirement.
Important Pension Plan Elements
The EPS-95 Pension Plan The Employees’ Provident Fund Organisation (EPFO) is in charge of running the EPS-95 pension plan. Employees receive pensions under this plan according to their salary and length of service. There has been a recent proposal to raise the minimum pension amount in this system from the existing 1,000 to 7,500. The purpose of this adjustment is to make life easier for older people.
For central government workers, a structured pension plan called the Unified Pension Scheme (UPS) has been introduced. Employees will get a pension under this plan equal to 50% of their average base pay for the previous 12 months of employment. This program offers National Pension System (NPS)-eligible employees the opportunity to transfer to UPS.
Service Length: A minimum of ten years of service is necessary.
Pensionable Age: After retirement, a pension is paid.
Voluntary Retirement: Following 25 years of service, a pension is also possible upon voluntary retirement.
Pension plans’ future
Pension plans will probably get much better in the future. Even more convenience may be added to the pension payment process by integrating technologies like the Aadhaar-based Payment System. In addition, other states might adopt the Unified Pension Scheme, which would benefit more workers.
Can I start receiving a pension when I am 50?
The full pension under EPS-95 is now accessible at age 58, while a reduced pension may be offered at age 50. Compared to the full pension, this is a lower pension sum. Pensions are also offered by UPS following retirement, which typically occurs around age 60. As a result, receiving a full pension at age 50 is not feasible; however, other possibilities, such as a reduced pension, are.
