Centre approves Unified Pension Scheme
Aug 24, 2024
New Delhi [India], August 24 : The Union Cabinet, chaired by Prime Minister Narendra Modi, on Saturday approved the Unified Pension Scheme (UPS).
Briefing the media after a meeting of the union cabinet, Information and Broadcasting Minister Ashwini Vaishnaw said on Saturday that about 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS).
The employees will have the choice to continue with the National Pension Scheme or UPS.
"Today the Union Cabinet has approved Unified Pension Scheme (UPS) for government employees providing for the assured pension...50 per cent 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," he said.
Under the UPS, employees will receive an assured pension of 50 per cent 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 a lesser service period up to a minimum of 10 years of service, as per a press release from Cabinet.
The 'Assured Family Pension' would be calculated at the rate of 60 per cent of pension of the employee immediately before her or his demise.
Under the UPS, an assured minimum pension of Rs 10,000 per month on superannuation after a minimum 10 years of service.
The scheme also includes inflation indexation on assured pensions, assured family pensions, and assured minimum pensions. Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in the case of service employees, a release from the Cabinet stated.
Under the UPS, employees will also receive a lump sum payment at retirement in addition to a gratuity. This payment will be equivalent to 1/10th 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 the assured pension.
