OPS was the best scheme because the employees did not have to make any contribution for pension and the government bore all its expenses. The Union government has estimated that the UPS will be beneficial for 99 percent of the currently working central employees.
Set to take effect on April 1, 2025, the UPS introduces various benefits, including a guaranteed pension amounting to 50 per cent of the average basic pay earned during the last 12 months before retirement.
The pension rule now applicable states, "The allowance shall be admissible to the recipient of the award and on his death to his widow lawfully married by a valid ceremony. The widow will continue to receive the allowance until her death.”
Former Law minister RS Prasad said he had closed down his mother's pension account on December 31, 2020, six days her death and there is no possibility of a closed down account receiving pension.