Centre Approves Unified Pension Scheme, To Benefit 23 Lakh Govt Employees | Top Updates

The BJP-led central government on Saturday approved the Unified Pension Scheme (UPS), aiming to provide assured pension, family pension and assured minimum pension to government employees.

“Today the Union Cabinet has approved Unified Pension Scheme (UPS) for government employees providing for the assured pension…50% assured pension is the first pillar of the scheme…second pillar will be assured family pension…About 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS)…There will be an option for the employees to opt between NPS and UPS…” Union Minister Ashwini Vaishnaw said.

Notably, the central government employees will exercise the right to decide whether to stay in the National Pension Scheme (NPS) or join the Unified Pension Scheme. Likewise, the state governments can decide to adopt this new UPS module.

The Unified Pension Scheme will be applicable from April 1, 2025. Rs 6250 crore will be the cost of implementing the scheme in the first year. UPS will apply to all those retired under the NPS from 2004.

“This scheme will benefit 23 lakh central government employees,” said Union Minister Ashwini Vaishnaw.

Prime Minister Narendra Modi met with a delegation of staff side of Joint Consultative Machinery for Central Government employees.

He said that the Unified Pension Scheme ensures “dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future”.

“We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future,” the prime minister said in an X post.

Key Features Of  UPS

• 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. Proportionate for a lesser service period up to a minimum of 10 years of service.
• Assured Family Pension: @60% of the pension of the employee immediately before her/his demise.
• Assured Minimum Pension: @ 10000 per month on superannuation after a minimum of 10 years of service.
• 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 serving employees
• Lump sum payment at superannuation in addition to gratuity. 1/10^th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service this payment will not reduce the quantum of assured pension.

Unified Pension Scheme Latest Updates

• Shiv Gopal Mishra, Secretary (Staff Side), National Council (Joint Consultative Machinery) said, ” Today, we are very thankful…maybe across the nation, it would be the first time a PM has invited the delegation of Staff Side of Joint Consultative Machinery to interact…this is a very important moment for 32 lakh central employees we represent…he has spoken about assured pension system…in the coming days, those who will retire and those who have already retired, they will get 50% assured pension…he also said that whenever there is a requirement, whole govt will be available for central govt employees.”
• The announcement comes ahead of upcoming Assembly elections in one state and a Union Territory later this year.