Unified Pension Scheme Gets Centre’s Nod: From 50% Assured Pension to Optional Participation, Key Points of UPS Approved by Union Cabinet (Watch Video)
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Unified Pension Scheme (UPS). Scroll down to read more about the Unified Pension Scheme.
Mumbai, August 24: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Unified Pension Scheme (UPS) on Saturday, August 24. This scheme aims to provide assured pension, family pension, and a minimum assured pension to government employees.
State governments will also have the option to adopt the Unified Pension Scheme. If they do, the number of beneficiaries is expected to reach around 90 lakh. The government has estimated that the expenditure for arrears will be INR 800 crore, with an annual cost increase of approximately INR 6,250 crore in the first year. Scroll down to read more about the Unified Pension Scheme. Unified Pension Scheme: Union Cabinet Approves Assured 50% of Salary as Pension for Govt Employees.
Key Points of Unified Pension Scheme
- Assured Pension: 50% of the average basic pay drawn over the last 12 months before superannuation for a minimum qualifying service of 25 years. Proportionate benefits for lesser service, with a minimum of 10 years.
- Assured Family Pension: 60% of the pension of the employee immediately before their demise.
- Assured Minimum Pension: INR 10,000 per month on superannuation after a minimum of 10 years of service.
- Inflation Indexation: Dearness relief based on the All India Consumer Price Index for Industrial Workers (AICPI-W) will be applied to assured pension, family pension, and minimum pension, similar to serving employees.
- Lump-Sum Payment: In addition to gratuity, a lump-sum payment at superannuation will be provided. This will be 1/10th of the monthly emolument (pay + DA) as of the date of superannuation for every completed six months of service. This payment will not reduce the quantum of the assured pension.
Union Cabinet approves Unified Pension Scheme (UPS), Says Ashwini Vaishnaw
The Union Cabinet has announced that the Unified Pension Scheme (UPS) will come into effect on April 1, 2025. Central government employees will have the option to choose between the National Pension Scheme (NPS) and the new UPS. Existing NPS subscribers within the central government will also be given the option to switch to UPS. Union Budget 2024: Finance Minister Nirmala Sitharaman Proposes ‘Vatsalya’ Pension Scheme for Minors in Budget 2024-25.
Union Minister Ashwini Vaishnaw, while detailing the scheme, mentioned that a committee was formed by the Centre, which conducted 100 meetings with several top organisations, including the RBI and the World Bank, to finalise the scheme. This initiative is expected to benefit 23 lakh central government employees. Vaishnaw further said that government employees will have the flexibility to choose between the New Pension Scheme and the Unified Pension Scheme.
(The above story first appeared on LatestLY on Aug 24, 2024 08:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).