New Delhi– The Central Government of India has introduced the Unified Pension Scheme (UPS), offering central government employees a secure pension based on their length of service and their most recent basic salary. The new scheme is set to benefit approximately 23 lakh central government employees currently enrolled under the National Pension Scheme (NPS).
Union Information and Broadcasting Minister Ashwini Vaishnaw announced the scheme, highlighting its rollout date of April 1, 2025. Employees will have the option to choose between continuing with the NPS or transitioning to the newly introduced UPS.
Approved by the Union Cabinet under the leadership of Prime Minister Narendra Modi, the UPS aims to provide an assured pension, family pension, and an assured minimum pension, thereby enhancing the financial security of government employees.
Key Features of the Unified Pension Scheme (UPS):
Assured Pension:Employees will receive a pension equivalent to 50% of the average basic pay drawn over the last 12 months before retirement, provided they have completed a minimum of 25 years of service.
Proportionate Pension:For employees with shorter service periods, the scheme offers a proportionate pension, with a minimum of ₹10,000 per month for those who have served at least 10 years.
Family Pension:In the event of an employee’s demise, their family will receive 60% of the employee’s pension, ensuring continued financial support.
Inflation Indexation:Pensions will be adjusted for inflation, preserving their value over time.
Lump Sum Payment:A one-time payment will be made at the time of superannuation, providing retirees with an additional financial boost.
With its introduction, the UPS is expected to significantly improve the quality of life for retirees, offering them enhanced financial security and peace of mind.
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