Superannuation rule in UPS likely to discourage early retirement: Experts

Experts say that criterion may increase labour force participation

Central-government employees who opt for the Unified Pension Scheme (UPS) will start getting pension only at the age of superannuation, which is 60 years, even if they retire before that. 

Experts are of the view this will discourage early retirement and increase labour-force participation.

  Under the current National Pension System (NPS), the superannuation date doesn’t matter for drawing pension because there is no assured pension and it is market-linked. 

The finance ministry on Saturday notified the UPS, cleared by the Cabinet in August last year, paving the way for its implementation from April 1, 2025, benefiting over 2.3 million central-government