TaxTMI 
TaxTMI 
Central Government introduce Unified Pension Scheme
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....ualifying service of ten years, from the date of superannuation; (b) in case of the Government retiring an employee under the provisions of FR 56 (j) (which is not a penalty under Central Civil Services (Classification, Control and Appeal) Rules, 1965) from the date of such retirement; and (c) in case of voluntary retirement after a minimum qualifying service period of 25 years, from the date such employee would have superannuated, if the service period had continued to superannuation. (ii) Assured Payout shall not be available in case of removal or dismissal from service or resignation of the employee. In such cases, the Unified Pension Scheme option shall not apply. Benefits under the Scheme (iii) Subject to other conditions stated in this notification, Assured Payout under the scheme shall be as follows, namely: - (a) the rate of full assured payout will be @50% of twelve monthly average basic pay, immediately prior to superannuation. Full assured payout is payable after a minimum 25 years of qualifying service; (b) in case of lesser qualifying service period, proportionate payout would be admissible; (c) a ....
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.... Regulatory and Development Authority from time to time. If an employee does not exercise an investment choice on individual corpus, the 'default pattern' of investment will apply. (xi) The investment decisions for the pool corpus built through the additional Central Government contribution will solely rest with Central Government. (xii) In respect of employees who have retired before the date of operation of Unified Pension Scheme and who opt for the Unified Pension Scheme option, Pension Fund Regulatory and Development Authority will determine the mechanism for making available the top- up amount. Explanation: For the purpose of this notification basic pay includes non-practicing allowance granted to medical officer in lieu of private practice. 3. The existing Central Government Employees under National Pension System, on the effective date of operationalisation of the Unified Pension Scheme option, as well as the future employees of Central Government can choose to either take the Unified Pension Scheme option under the National Pension System or continue with the National Pension System without the Unified Pension Scheme option. In case an employee....
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....thorise transfer of value or units equivalent to the benchmark corpus and the balance amount in the individual corpus will be credited to the employee. 9. In case the values or units transferred by the employee from the individual corpus to the pool corpus, is less than the value or units of the benchmark corpus, payout proportionate to the assured payout shall be authorised. 10. The Unified Pension Scheme, being a 'fund-based' pension system, relies on the regular and timely accumulation and investment of applicable contributions (from both the employee and the employer) for Assured Payout to the employees. 11. For the sake of clarity, it is made clear that any employee who has exercised the Unified Pension Scheme option under National Pension System under this notification, shall not be entitled for and cannot claim, any other policy concession, policy change, financial benefit, any parity with subsequent retirees etc. later including postretirement. 12. The provisions of Unified Pension Scheme will also be applicable, mutatis mutandis to past retirees of National Pension System, who have superannuated before the date of operationalising of Unified Pension Scheme. Suc....
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....: The employee fulfils the conditions (i) and (iii) to (v). The employee has a qualifying service (based on the number of months of contribution) of 15 years (180 months). • The value of the individual corpus of the employee at retirement is Rs 30,00,000 (8,000 units) (denoted as IC). • The value of the benchmark corpus will be Rs 30,00,000 (8,000 units) (denoted as BC). • The assured payout of the employee will be (i) if Q exceeds 300, it will be taken as 300. (ii) if (P/2) XQ/300 is less than 10,000, it will be taken as 10,000. Scenario 3: The employee fulfils the conditions (i) and (iii) to (v). The employee has a qualifying service (based on the number of months of contribution) of 10 years(120months). • The value of the individual corpus of the employee at retirement is Rs 25,00,000 (10,000 units) (denoted as IC). • The value of the benchmark corpus will be Rs 25,00,000 (10,000 units) (denoted as BC). • The assured payout of the employee will be (i) if Q exceeds 300, it will be taken as 300 (ii) if (P/2) XQ/300 is less than 10,000, it will be taken as 10,000. ....
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...., it will be taken as 300 (ii) if (P/2) XQ/300 is less than 10,000, it will be taken as 10,000. Scenario 6: The employee fulfils the conditions (i), (ii), (iii) and (v). The employee opted for investment choices in the individual corpus and the value of the individual corpus is higher than benchmark corpus • The value of the individual corpus of the employee at retirement is Rs 55,00,000 (11,000 units)(denoted as IC). • The value of the benchmark corpus is Rs 50,00,000 (10,000 units) (denoted as BC). The benchmark corpus has been worked out based on 'default pattern' of investment. • The assured payout of the employee will be (i) if Q exceeds 300, it will be taken as 300 (ii) if (P/2) XQ/300 is less than 10,000, it will be taken as 10,000. In this case, the employee will get a credit of the excess value of individual corpus vis-à-vis benchmark corpus (i.e.Rs 5,00,000) in his designated bank account at retirement. Scenario 7: The employee fulfils the conditions (i), (ii), (iii) and (v). The employee opted for investment choices in the individual corpus and the value of the individual corpus is lower th....