Saturday, March 29, 2025
The Modi government has introduced the Unified Pension Scheme (UPS) for central employees covered under the National Pension System (NPS). The scheme will take effect on April 1, 2025. It combines the strengths of the Old Pension Scheme (OPS) and the current NPS to provide more security.
Guaranteed Pension:
Employees with 25 or more years of service will receive 50% of their average basic pay (last 12 months) as pension. Those with 10 to 25 years of service will get a proportionate amount.
Minimum Pension:
Anyone who completes at least 10 years will receive a minimum of ₹10,000 per month.
Family Support:
If an employee passes away, the family will get 60% of the entitled pension.
Dearness Relief:
Pension will include DA revisions, helping to counter inflation.
Lump-Sum Benefit:
For every six months of completed service, employees will get 1/10th of their last salary plus DA as a lump-sum payment upon retirement.
Inflation Adjustment:
The scheme will adjust pensions, family pensions, and minimum pensions in line with inflation rates.
Employees under NPS who complete 10 years of service by March 31, 2025, can apply.
The scheme also covers retired employees and their spouses.
Interested individuals must apply by June 30, 2025.
Employees can choose between NPS and UPS.
The Old Pension Scheme will not return under this policy.
The policy is expected to benefit over 2.3 million central government employees.
The goal is to ensure stable, predictable retirement benefits. By combining the safety of OPS with the structure of NPS, the UPS aims to build long-term confidence among employees.
