August 26, 2024
Things to know about Unified Pension Scheme
The Union Cabinet approved the Unified Pension Scheme on August 24. The UPS is set to be implemented from April 1, 2025.
Under the scheme, all central employees who have worked for 25 years or more are eligible to receive 50% of the average salary drawn in the last 12 months as pension.
For those with less than 25 but more than 10 years of service, the pension will be calculated proportionately with a guaranteed pension of at least ₹10,000 per month.
Provisions of UPS will also apply to past retirees under NPS who have already superannuated. Arrears for the past period will be paid with interest at Public Provident Fund (PPF) rates.
Existing as well as future employees will have the option of joining NPS or UPS. However, once the choice is made, it will be considered as final.
Under UPS, the employee contribution towards pension will not increase. However, the government's contribution will increase from 14% to 18.5%.
If a retiree passes away, the family of the deceased employee will receive 60% of the pension that the employee was receiving immediately before their death.
In addition to gratuity, employees will receive a lump-sum payment at the time of superannuation.
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