Unified Pension Scheme: Gift to government employees before the budget, UPS will be implemented from April 1, 2025..

Unified Pension Scheme: Before the budget, the Finance Ministry has notified the operation of the Unified Pension Scheme (UPS) as an option under the National Pension System (NPS) for government employees. This will provide guaranteed retirement benefits to central government employees. The Unified Pension Scheme will come into effect from April 1, 2025.

On which employees will the Unified Pension Scheme be applicable

The notification issued by the Finance Ministry said that the Unified Pension Scheme (UPS) will apply to central government employees who come under the National Pension System and who have chosen this option under NPS.

Will be implemented from April 1

The notification further said that the Pension Fund Regulatory and Development Authority (PFRDA) will issue rules for the operation of UPS. This scheme will be implemented from April 1, 2025.

Let us tell you that the Union Cabinet headed by Prime Minister Narendra Modi approved the new pension policy for about 23 lakh central government employees on August 24, 2024, in which a new pension system was presented in the form of UPS, under which 50% of the basic salary will be given as monthly payment. This decision was taken at the request of the employee unions, who had demanded a guarantee of retirement benefits.

The government constituted a high-level committee under the chairmanship of T.V. Somanathan, nominated for the post of Cabinet Secretary in April 2023. This committee was to review the NPS and the new pension system. The government took this step. When the opposition parties in power in some states were switching to the old pension scheme this was increasing the financial burden.

Benefits of the Unified Pension Scheme

In the Unified Pension Scheme, central employees will be provided 50% of the average salary of 12 months before their retirement. However, for this, at least 25 years of service must be completed.

At the same time, employees who have served for less than 25 years but more than 10 years will get a pension on a proportionate basis.

The new pension scheme also guarantees a minimum pension of Rs 10,000 per month on retirement after a minimum of 10 years of service.

If a person dies, then 60 percent of his pension will be given to his family as a family pension.

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