Centre approves Unified Pension Scheme; here’s all you need to know

The Union Cabinet, chaired by the Prime Minister Narendra Modi On Saturday the Unified Pension System (Universal Postal Union), whose objective is to provide secure pensions to the family. pension and ensured a minimum pension for public employees.

Meanwhile, state governments will also have the option to opt for the Unified Pension Scheme. If state governments opt for the UPS, then the number of beneficiaries will be around 90 lakh. According to the government, the arrears expenditure will be Rs 800 crore. The annual cost increase will be around Rs 6,250 crore in the first year.

The scheme will come into effect from April 1, 2025. Central government employees will have the option to choose between the National Pension Scheme (NPS) and the Central Government Pension Scheme (UPS). Existing central government NPS subscribers will also have the option to switch to UPS.

Here’s what you need to know:

  • Guaranteed pension: 50% of the average basic salary received during the last 12 months prior to retirement for a minimum qualified service of 25 years
  • Proportional for minor service up to a minimum of 10 years of service
  • Family pension insured @60% of the employee’s pension immediately before his death
  • Minimum guaranteed pension of $10,000 per month on retirement after a minimum of 10 years of service
  • Indexation for inflation: on assured pension, assured family pension and assured minimum pension Dearness relief based on All India Consumer Price Index for Industrial Workers (AICPI-W) as in case of employees in service
  • Lump sum payment on retirement in addition to gratuity
  • 1/10 of the monthly emolument (salary + DA) at the date of retirement for every six months of service completed
  • This payment will not reduce the amount of the insured pension.
Agencies

More to come…

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