The government has introduced the Unified Pension Scheme (UPS), which aims to benefit 23 lakh central government employees. The government has introduced the Unified Pension Scheme (UPS), which will benefit 23 lakh central government employees. Union Information and Broadcasting Minister Ashwini Vaishnaw announced the inauguration, noting that the new plan will be implemented on April 1, 2025. “Some central employees met with the Prime Minister today.” “They were with the UPS in the meeting,” he claimed.

Unified Pension Scheme: Eligibility

• According to Ashwini Vaishnaw, employees with at least ten years of service are eligible for a UPS pension. However, those with at least 25 years of service are eligible for the scheme’s full benefits, including the assured pension.
• The scheme is optional for existing NPS employees and those who choose the Voluntary Retirement Scheme (VRS). Future employees will have the option of joining the UPS. However, once an employee opts into UPS, the decision is definitive and cannot be revoked.

UPS Minimum Pension Amount:

Mr. Vaishnaw informed us that UPS offers a minimum pension of ₹10,000 per month for employees who retire after at least ten years of service.

Key Advantages of the Unified Pension Scheme

• Retirees will get a pension equal to 50% of their average basic pay in the past 12 months before retirement. The Information and Broadcasting Minister announced that this incentive is accessible to personnel with at least 25 years of service, with proportionate advantages for individuals with shorter service periods (down to a minimum of 10 years).
• The government plans to boost its contribution to the pension fund from 14% to 18.5%. The employees’ contribution remains unaffected by this rise.
• Mr Vaishanw claimed that their family will receive 60% of the retiree’s pension if a pensioner dies.
• Pensions under the UPS will be geared for inflation. The Dearness Relief (DR) would be calculated using the All India Consumer Price Index for Industrial Workers (AICPI-IW), offering protection against growing living costs.
• Ashwini Vaishnaw disclosed that retirees will receive a lump-sum payment in addition to their gratuity when they reach superannuation. This amount will equal one-tenth of the monthly payments (pay + DA) as of the date of superannuation for every six months of completed service. Significantly, this payment will not affect the amount of the assured pension.
• The policy would also apply to NPS pensioners who have already superannuated. These retirees will receive arrears for the previous period, with interest computed at the Public Provident Fund (PPF) rate.

Additional specifications:

• The central government will implement the UPS, which will benefit around 23 lakh government employees.
• It will be implemented on April 1, 2025.
• The scheme’s architecture is intended for implementation by state governments as well. If implemented completely, UPS could benefit over 90 lakh government employees enrolled in the NPS across India.