Information and Broadcasting Minister Ashwini Vishnaw launched UPS scheme on Saturday 24 August 2024. Cabinet of Center govt. has approved a new pension scheme for Center Govt. Employee called UPS- Unified Pension Scheme for financial Security of Government workers, which will provide a assured minimum pension of worth 10,000 Rupees per month.
When it will be implemented – As per government has decided to implement this scheme from next financial year that is 1 April 2025. Government employees covered under NPS(New Pension Scheme) will have option to opt new UPS or already running NPS.
Main Highlights of UPS- Unified Pension Scheme
- A minimum assured pension of amount 10,000 rupees on superannuation on completion of at least 10 years of service..
- A 50% average basic pay drawn over last 12 months prior to superannuation, with minimum qualifying service of 25 years.
- At least 10 year service must be to get UPS a minimum assured pension.
- The Assured Family Pension would be calculated on basis of 60 % pension of employees immediately her/ his death.
- There will be inflation indexation for Minimum Pension, Assured Family Pension and Assured Pension Scheme under UPS.
- DA will be based on All India Consumer Price Index for Industrial Workers (AICPI-IW) in case of service employees.
- Gratuity Benefits -One tenth of Monthy Emoluments (Pay+ DA) as on date of superannuation for every completed service of Six months of service. This will not reduce the quantum of assured pension.
- The UPS, will be a contributory scheme, with employees’ chipping in 10% of salary and the government bringing in 18.5% of salary. Mr. Soma Nathan also signaled that workers’ contributions will be frozen at the 10% threshold, while the government’s contributions may be adjusted higher or lower based on periodic actuarial assessments about the funding requirements to meet the UPS promises
Committee to Review NPS- Former Finance Secretary and Cabinet Secretary- Sh. T.V. Soma Nathan, made uncharged to review NPS . This committee was set up in March 2023. Government has launched UPS on recommendation by NPS Committee.
| What is the Unified Pension Scheme (UPS)? |
The Unified Pension Scheme (UPS) ensures eligible employees receive a guaranteed pension of 50% of their last drawn salary upon retirement. |
| Who is eligible to apply for the UPS? |
The scheme is designed for government employees and certain organizations; eligibility criteria may vary by employment sector. |
| How does the pension calculation work under the UPS? |
The pension amount is calculated as 50% of the employee’s last drawn salary at the time of retirement. |
| What are the benefits of enrolling in the Unified Pension Scheme? |
Key benefits include financial security during retirement, a stable monthly income, and peace of mind with a guaranteed pension. |
| How can I apply for the Unified Pension Scheme? |
Interested individuals can apply through their respective organizations or government departments; specific procedures may vary. |
