Unified Pension Scheme for Central Government Employees in Place of NPS
Unified Pension Scheme salient features
Assured Pension @ 50% of Basic Pay
Assured family pension: @60% of pension of the employee immediately before her/his demise
Dearness Relief is also Allowed
Lump sum payment at superannuation in addition to gratuity
Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service
Table of Contents
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Unified Pension Scheme (UPS) with several key features:
- Assured Pension: Employees will receive a pension equivalent to 50% of their average basic pay over the last 12 months prior to retirement. This is guaranteed for those with a minimum qualifying service of 25 years. For those with less service, the pension will be proportionate, with a minimum qualifying service of 10 years required.
- Assured Family Pension: In the event of the employee’s death, the family will receive a pension equivalent to 60% of the employee’s pension immediately before their demise.
- Assured Minimum Pension: A minimum pension of ₹10,000 per month is assured upon superannuation after a minimum of 10 years of service.
- Inflation Indexation: The assured pension, family pension, and minimum pension will be indexed to inflation, ensuring they keep pace with the cost of living.
- Dearness Relief: Pensioners will receive Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), similar to that provided to service employees.
- Lump Sum Payment: Upon retirement, in addition to the pension and gratuity, a lump sum payment will also be provided.
This scheme aims to provide financial security to retirees and their families, ensuring a stable income post-retirement.
PIB Press Release
Cabinet approves Unified Pension Scheme
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the Unified Pension Scheme (UPS).
The salient features of the UPS are:
1.Assured pension : 50% 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 lesser service period upto a minimum of 10 years of service.
2.Assured family pension: @60% of pension of the employee immediately before her/his demise.
3.Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.
4.Inflation indexation: on assured pension, on assured family pension and assured minimum pension
5.Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees
Lump sum payment at superannuation in addition to gratuity1/10th 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 assured pension
View the Government Press Release NPS to UPS
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Need to merge the political leaders pensions also in unified pension scheme alongwith the employees plz
Suppose an employee has availed half pay leave or availed leave without pay due to any circumstances whatsoever may be, the twelve monthly average of last basic pay drawn will create injustice to him forever! Hence it’s my humble suggestion that it should be ” 50% of everage of last basic pay drawn during last 12 months or 50% of last basic pay drawn whichever is benificial to the pensioner.”