Unified Pension Scheme (UPS) for central government employees .
The UPS, effective April 1, 2025, will provide assured pensions, family pensions, and minimum pensions to 23 lakh government employees. Here are the key benefits of the Unified Pension Scheme approved by the Union Cabinet.
Unified Pension Scheme: Key features
The UPS can be seen as an upgrade of the existing NPS for government employees, who will continue to contribute 10% of their income to the scheme.
However, the government's contribution has increased to 18.5%, against 14% currently. The UPS provides an assured pension, inflation indexation, and an assured family pension to its subscribers. Here are the salient features of the scheme
Assured pension
UPS subscribers will get an assured pension under the scheme. They would be entitled to 50% of the average basic pay drawn over the last 12 months before superannuation. The feature is available for employees with at least 25 years of service. This pay is to be proportionate for lesser service periods up to a minimum of 10 years of service.
Assured family pension
The scheme also provides the benefit of assured family pension. Under this feature of the UPS, subscribers' family members will get 60% of the pension immediately after their demise.
Assured minimum pension for employees less than 25 yrs service
Employees retiring without completing twenty-five years of their service can also get pensions under the UPS. The scheme provides the assured minimum pension benefit of Rs. 10,000 per month on superannuation after a minimum of ten years of service.
Inflation indexation
The assured pension, family pension, and assured minimum pension provided to the UPS subscribers will be indexed to inflation.
Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees lump sum payment at superannuation in addition to gratuity.
1/10th of monthly emoluments (Pay+DA) as on the date of superannuation for every completed six months of service.
This payment will not reduce the quantum of assured pension.
(Source: Livemint)