The Cabinet on Saturday approved the Unified Pension Scheme (UPS) for 23 lakh central government employees. The UPS ensures that all central government employees receive 50 per cent of their last drawn salary from the past 12 months as pension who have served for 25 years or more. Additionally, they will also be eligible for post-retirement inflation-linked increments in their pension amount. Cabinet Secretary-designate TV Somanathan said that the new scheme will come into effect on April 1, 2025, and its benefits will be applicable to those retiring by March 31, 2025, including the payment of any arrears. The employees will have an option to opt for the UPS or NPS from the upcoming financial year.
FinanceLane.com