Most state and Union Territory administrations have also announced the implementation of NPS for their new employees. The Unified Pension Scheme (UPS) for central government employees was approved by the center on Saturday. It is anticipated to benefit 23 lakh employees by offering financial security and stability in their retirement years.
Unified Pension Scheme Live News
The Cabinet, under the leadership of Prime Minister Narendra Modi, introduced the Unified Pension Scheme (UPS) for central government employees, merging the Old Pension Scheme (OPS) with the National Pension Scheme (NPS). Effective April 1, 2025, the UPS will offer assured pensions, family pensions, and minimum pensions to 23 lakh government employees.
What is unified pension scheme?
The new pension plan for central government employees merges benefits of two older schemes. It offers assured pensions linked to inflation, family pensions, and minimum pensions. The union government introduced the Unified Pension Scheme for its workers.
Features In Unified Pension Scheme
Assured Pension:
Employees with at least 25 years of service will be granted a guaranteed pension equal to 50% of their average basic salary for the last 12 months before retirement. If the service duration is less than 25 years, the pension will be adjusted accordingly, with a minimum requirement of 10 years of service.
Assured Family Pension:
In the event of an employee’s death, the spouse will receive a family pension equal to 60% of the employee’s pension before their passing.
Assured Minimum Pension:
Employees with at least 10 years of service are assured a minimum pension of ₹ 10,000 per month upon retirement.
Inflation Indexation:
Both the guaranteed pension and the survivor’s pension are eligible for inflation indexation to ensure they remain in line with inflation.
Dearness Relief:
Similar to employees, retirees covered by UPS will be entitled to Dearness Relief calculated according to the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Lump Sum Payment on Superannuation:
Employees will receive a lump sum payment upon superannuation, equivalent to 1/10th of their monthly emoluments for every six months of completed service, in addition to gratuity. This payment will not impact the assured pension amount. Prime Minister Narendra Modi expressed appreciation for government employees’ dedication to national development and highlighted the Unified Pension Scheme’s role in providing financial security and dignity to them.
The UPS stands to benefit 23 lakh central government employees right away, with the potential to reach 90 lakh if state governments choose to participate, thereby expanding the program’s coverage to a broader group of government employees nationwide. This development follows several non-BJP states opting to return to the DA-linked Old Pension Scheme (OPS) and employee unions in certain states advocating for the same. The National Pension Scheme (NPS) is applicable to all government employees except for those in the armed forces who joined the central government after January 1, 2004. The majority of state and Union Territory governments have also introduced NPS for their new employees.
