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Unified Pension Scheme: Who is eligible? What's the minimum amount? Explained
The central government has approved a new Unified Pension Scheme which is set to benefit around 23 lakh government employees
The union cabinet on Saturday approved a Unified Pension Scheme (UPS), which will benefit approximately 23 lakh government employees and will serve as an alternative to the National Pension System.
Prime minister Narendra Modi, who chaired the meeting, posted on X saying, “The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future.”
Also Read: HC notice to J&K admn, Waqf Board over employees being denied pensions
In 2023, the finance ministry set up a committee led by finance secretary TV Somanathan to review the existing pension scheme - NPS - for government employees.
Also Read: How is the new ‘Unified Pension Scheme’ different from NPS?
The National Pension System (NPS)is applicable for all government employees who joined the service after April 1, 2004. NPS subscribers can chose to shift to the UPS, which offers assured pension, minimum pension and assured family pension from the next financial year.
Also Read: Centre approves ‘Unified Pension Scheme’ for govt employees
While many BJP ruled states have hailed the decision, several non-BJP ruled states have decided to revert to the Old Pension Scheme (OPS), reported news agency PTI.
Benefits
The UPS promises assured pension - which is 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.
There is also a proportionate plan in place for shorter service periods, with a minimum of 10 years of service.
The new pension scheme also provides assured family pension at the rate of 60 per cent of the pension of the employee in case of their death.
Minimum pension will be Rs. 10,000 per month on superannuation after minimum 10 years of service.
Eligibility
The new scheme will be applicable from April 1, 2025. All those who are retired or retiring up till March 31, 2025 with arrears are eligible.
The information and broadcasting minister Ashwini Vaishnaw said that the scheme will positively affect 23 lakh people who are government employees.
Prime minister Narendra Modi met a joint employee organisation and later said on X, "Met a delegation of staff side from the Joint Consultative Machinery for Central Government employees. They expressed joy on the Cabinet's decision regarding the Unified Pension Scheme."
