The Centre has announced the implementation of the Unified Pension Scheme (UPS) for Central Government employees already enrolled in the National Pension System (NPS). The scheme will come into effect from April 1, 2025. According to a government notification issued on January 24, 2025, the UPS will be available to eligible employees under specific conditions.
Employees who retire after completing a minimum of ten years of qualifying service will receive the assured payout from the date of superannuation. Employees retired by the government, not under penalty provisions, will be eligible for the payout from the date of retirement. Employees opting for voluntary retirement after at least 25 years of service will receive the payout from the date they would have superannuated.
The scheme, however, will not apply to employees who are dismissed, removed, or resign from service, in which case the UPS option will not be available. Employees with 25 or more years of qualifying service will receive 50 percent of their average basic pay over the last 12 months prior to superannuation as the full assured payout. Employees with less than 25 years of service will receive a proportional payout.
A minimum payout of Rs.
unified pension details for employees
10,000 per month is assured for employees with ten or more years of qualifying service.
For employees retiring voluntarily after 25 years of service, the assured payout will begin from the date they would have reached superannuation had they continued in service. In the event of the payout holder’s death after superannuation, a family payout will be made at 60 percent of the last admissible payout. This payout will be provided to the legally wedded spouse of the deceased, as per the date of superannuation, voluntary retirement, or retirement under FR 56(j).
Dearness Relief will be applicable on the assured payout and family payout, similar to the Dearness Allowance for serving employees. The relief will only be provided once the payout commences. Additionally, a lump sum payment of 10 percent of the monthly emoluments (basic pay + Dearness Allowance) will be granted for every six completed months of qualifying service at the time of superannuation.
This lump sum will not affect the assured payout. The UPS aims to offer retirees a guaranteed pension, ensuring financial security and dignity post-retirement. It combines elements of both the Old Pension Scheme (OPS) and NPS to address the demands of federal staff unions for assured retirement benefits.