UNIFIED PENSION SCHEME 2025

ஒருங்கிணைந்த ஓய்வூதியத் திட்டத்திற்கான வரைமுறைகள் - இந்திய அரசின் அரசிதழ் வெளியீடு - நாள்:19.03.2025..

The Unified Pension Scheme (UPS) is a pension initiative introduced by the Government of India to provide central government employees with an assured pension benefit. Approved by the Union Cabinet on August 24, 2024, the scheme is set to be implemented from April 1, 2025, and is expected to benefit approximately 23 lakh central government employees.

Key Features of the Unified Pension Scheme:

• Assured Pension: Employees with a minimum qualifying service of 25 years will receive a pension equivalent to 50% of the average basic pay drawn over the last 12 months prior to superannuation. For those with service periods between 10 to 25 years, the pension will be proportionate, with a minimum of ₹10,000 per month.

• Family Pension: In the event of a pensioner's death, the family will receive 60% of the last drawn pension as a family pension.

• Government Contribution: The government's contribution to the pension fund will increase to 18.5% under the UPS.

• Inflation Indexation: Pensions under the UPS will be indexed to inflation, ensuring that the pension's purchasing power is maintained over time.

Eligibility and Transition:

The UPS is available to central government employees who are currently covered under the National Pension System (NPS). This includes employees already in service, newly recruited employees, and retired employees who were earlier under the NPS. Additionally, if a retired employee who was in NPS has passed away without opting for the UPS, their legally married spouse can avail the benefits of this scheme.

Comparison with Other Pension Schemes:

• Old Pension Scheme (OPS): The OPS provided a defined benefit pension, which was a fixed percentage of the last drawn salary, but it posed significant fiscal burdens due to its non-contributory nature.

• National Pension System (NPS): Introduced as a contributory pension scheme, the NPS shifted the pension burden by requiring contributions from both employees and the government. However, it lacked the assured pension benefit, leading to demands for a more secure system.

The UPS aims to balance the assured benefits of the OPS with the sustainability of the NPS by introducing a hybrid model that ensures a guaranteed pension while maintaining a contributory framework.

Implementation and Application:

The Pension Fund Regulatory and Development Authority (PFRDA) has issued new rules for implementing the UPS under the NPS framework. Government employees wishing to opt for the UPS must apply before the specified deadlines to ensure a smooth transition.

For more detailed information, including official notifications and frequently asked questions, employees are advised to visit the Department of Financial Services' official website. 

CLICK HERE UPS GAZETTE NOTIFICATION PDF