Cabinet approves Unified Pension Scheme for central government employees

By  Firstdespatch Desk   Aug 24, 2024

Maligaon, Aug 25 (FD)The Union Cabinet, chaired by the Hon’ble Prime Minister Shri Narendra Modi, approved the Unified Pension Scheme (UPS) for central government employees with assured pension post-retirement on 24 th August, 2024. The five key features of UPS are 50% assured pension; Assured Family Pension; Assured Minimum Pension; Inflation with Indexation and Lump-Sum payment at superannuation in addition to gratuity.

As per the Unified Pension Scheme government employees will get assured pension @50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period upto a minimum of 10 years of service. Assured family pension @60% of pension of the employee will be provided immediately before her/his demise. The scheme will provide minimum pension of Rs.10,000/- per month on superannuation after minimum 10 years of service. The UPS also ensures inflation indexation on assured pension, on assured family pension and assured minimum pension. Under this scheme the employee will get lump sum payment at superannuation in addition to gratuity. This will be calculated as 1/10 th  of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service.

Provisions of UPS will apply to past retirees of New Pension Scheme (NPS) (who have already superannuated) and for that arrears for past period will be paid with interest @PPF rates.
The scheme will be effective from 1 st April, 2025 and this scheme is going to benefit the central government employees across the country. The scheme has also been designed for adoption by State Governments and the State Governments can choose this option for the benefit of those employees who are presently on NPS.