What is the difference between Unified Pension Scheme and the Old and New Pension Scheme
Exploring the variations between different pension schemes in India.
- Unified Pension Scheme is a single pension scheme introduced by the government that combines old pension schemes into a single scheme.
- The Old Pension Scheme was in place for government employees hired before a certain date, providing defined benefits upon retirement.
- The New Pension Scheme, also known as the National Pension System, is a contribution-based scheme where individuals can make regular contributions towards their pension account.
- The major difference lies in the structure of benefits - the Old Pension Scheme offers defined benefits, while the New Pension Scheme depends on the contributions made by the individual.
- The Unified Pension Scheme aims to simplify pension administration and make it more uniform for all government employees.
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8 months ago