New Delhi, August 24: In a significant decision impacting lakhs of employees, the BJP-led central government approved the Unified Pension Scheme (UPS) on Saturday, which guarantees an Assured Pension and Assured Family Pension for government employees.
During a media briefing following a union cabinet meeting chaired by Prime Minister Narendra Modi, Information and Broadcasting Minister Ashwini Vaishnaw announced that approximately 23 lakh central government employees would benefit from this new scheme. The UPS allows employees to choose between continuing with the existing National Pension Scheme (NPS) or opting for the new UPS.
Vaishnaw explained that the Assured Pension will be set at 50% of the average basic pay drawn over the last 12 months prior to retirement, applicable for those with a minimum qualifying service of 25 years. For employees with shorter service periods, the pension will be calculated proportionately, with a minimum requirement of 10 years of service.
Additionally, the Assured Family Pension will be calculated at 60% of the pension amount the employee was receiving before their demise. The scheme also includes a provision for an Assured Minimum Pension of ₹10,000 per month for those who retire after a minimum of 10 years of service.
The implementation of the UPS is set to begin on April 1, 2025, with benefits applicable to employees retiring until March 31, 2025, including arrears. This move follows extensive consultations and demands from government employees for reforms to the NPS, which has been criticized for not providing a guaranteed pension amount