Q. Consider the following statements regarding the Unified Pension Scheme (UPS):
1.It ensures that government employees receive a pension equal to 50% of their average basic pay from the last 12 months before retirement, as long as they have served for at least 25 years.
2.Variable pension contributions feature of the UPS ensures that pensions keep pace with inflation.
3.It is available to both government and private sector employees.
4.In the event of an employee’s death, the family will receive a pension amounting to 60% of the employee’s pension.
How many of the statements given above are correct?
Answer: B
Notes:
Explanations –
Statements 1 and 4 are correct. The UPS guarantees a pension for government employees equal to 50% of their average basic pay from the last 12 months before retirement, provided they have at least 25 years of service. The UPS provides a family pension amounting to 60% of the employee’s pension in the event of their death.
Statements 2 and 3 are incorrect. The UPS adjusts for inflation by using inflation indexation and providing Dearness Relief. The UPS is specifically designed for central government employees, although it may be adopted by state governments. It is not available to private sector employees.
Source: AIR
