New Delhi: Prime Minister Narendra Modi, who returned from a whirlwind Ukraine tour following a two-day visit to Poland, on Saturday chaired an important Union Cabinet meeting which approved the Unified Pension Scheme (UPS) for government employees.
Under the UPS, beneficiaries will get 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.
Pension will be proportionate for lesser service period, up to a minimum of 10 years of service.
The decision will benefit around 23 lakh employees.
“Government employees have demanded some changes in the New Pension Schemes. For this, PM Modi constituted a committee under the chairmanship of Cabinet Secretary TV Somanathan. This committee held more than 100 meetings with different organisations and nearly all the states,” Union minister Ashwini Vaishnaw said.
“Following extensions consultations with everyone, including Reserve Bank of India and World Bank, the committee has recommended a Unified Pension Scheme. Today, the Union Cabinet has approved this Unified Pension Scheme, which will now be implemented,” Vaishnaw added.
“This scheme will benefit 23 lakh central government employees.”
UPS will be implemented from April 1, 2025 and employees will have the option to choose between the NPS or UPS.
Following are the key features of UPS:
Assured pension — The scheme assures 50 per cent of average basic salary for the last 12 months before retirement as pension for government employees who complete a minimum of 25 years in service.
Family Pension — In case of death, pensioner’s family will get 60 per cent of the pension received at the time of death.
Minimum pension — The scheme assures Rs 10,000 per month after retirement for government employees who have completed a minimum 10 years of service.
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