Q. With reference to the Unified Pension Scheme (UPS), how many of the following statements are correct?
1.It combines elements of both the Old Pension Scheme and the National Pension Scheme.
2.There is a guaranteed minimum pension for retirees who have served at least 10 years.
3.It allows employees to switch back to the National Pension Scheme after opting for the UPS.
Select the correct answer using the codes given below:
Answer: B
Notes:
Explanation –
Statements 1 and 2 are correct. The UPS is designed to integrate features from both the Old Pension Scheme (OPS) and the National Pension System (NPS). This creates a hybrid model that offers a guaranteed minimum pension while also allowing for investment-based growth. The UPS guarantees a minimum pension for employees who have completed at least 10 years of service, ensuring a basic level of financial security in retirement.
Statement 3 is incorrect. Once an employee opts for the UPS, they cannot switch back to the National Pension Scheme (NPS). The choice between UPS and NPS is final.
Source: The Hindu
