The Central government employees will be given the option of choosing between National Pension Scheme (NPS) and UPS.
New Delhi: The central government has announced new pension scheme under which central government employees will be getting minimum pension after retirement along with family pension based on their last drawn salary at the time of superannuation. Notably, the Central government employees will be given the option of choosing between National Pension Scheme (NPS) and UPS.
New Unified Pension Scheme: Important Dates
The new pension scheme will be effective from April 1, 2025. Also, the existing central government NPS subscribers will also be given the option to switch to UPS.
Union Minister Ashwini Vaishnaw says, “Today the Union Cabinet has approved Unified Pension Scheme (UPS) for government employees providing for the assured pension…50% assured pension is the first pillar of the scheme…second pillar will be assured family pension…About 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS)…There will be an option for the employees to opt between NPS and UPS…”‘
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#WATCH | Union Minister Ashwini Vaishnaw says, “Today the Union Cabinet has approved Unified Pension Scheme (UPS) for government employees providing for the assured pension…50% assured pension is the first pillar of the scheme…second pillar will be assured family… pic.twitter.com/HmYKThrCZV
— ANI (@ANI) August 24, 2024
“There’s a difference between how PM Modi works and the oppositions works. Unlike the opposition, PM Modi believes in holding extensive consultations. 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, and it will be implemented in the future,” the minister added.
Unified Pension Scheme: Salient Features
- In the new pension scheme, 50% of the average basic pay drawn over the last 12 months prior to superannuation/ retirement for a minimum qualifying service of 25 years will be considered the average pension.
- The Assured Family Pension for the employees will be 60% of pension of the pension immediately before her/his demise.
- The Assured Minimum Pension that will be applicable to the employees is Rs 10000 per month on superannuation only after a service of 10 years.