Unified Pension Scheme for central government employees approved
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS) for central government employees on Saturday. This scheme will be effective from April 1, 2025, and will benefit 23 lakh central government employees.
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What is UPS
The Central Government has launched the Unified Pension Scheme (UPS), which provides government workers with a steady pension based on their length of service and most recent basic salary drawn. According to a Press Information Bureau release, the scheme has five important features.
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Assured pension
For a minimum qualifying service of 25 years, 50% of the average basic salary drawn for the past 12 months prior to superannuation. Up to a minimum of ten years of service, this compensation is to be commensurate with shorter service periods.
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Assured family pension
60% of pension of the employee immediately before her/his demise.
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Assured minimum pension
After at least ten years of service, @10,000 per month in superannuation.
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Inflation indexation
On assured pension, on assured family pension and assured minimum pension. Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees.
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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 does not diminish the quantum of secured pension.
