How the Unified Pension Scheme Could Transform Your Financial Future!
In a significant step to enhance retirement benefits for central government employees, the Cabinet, under the leadership of Prime Minister Narendra Modi, introduced the Unified Pension Scheme (UPS) on Saturday. This new scheme aims to merge the advantages of the Old Pension Scheme (OPS) with those of the current National Pension Scheme (NPS).
The Unified Pension Scheme (UPS), set to take effect on April 1, 2025, will offer guaranteed pensions, family pensions, and minimum pensions to 23 lakh government employees. These are the main advantages of the UPS as approved by the Union Cabinet last night
Unified Pension Scheme: Key Highlights
The Unified Pension Scheme (UPS) serves as an enhancement of the current National Pension Scheme (NPS) for government employees, who will still contribute 10% of their income. Notably, the government’s contribution has been raised to 18.5%, up from the previous 14%. The UPS offers a guaranteed pension, inflation indexation, and a secured family pension for its subscribers. Below are the key features of the scheme.
Subscribers to the UPS will receive a guaranteed pension under the scheme. They will be eligible for 50% of the average basic pay earned during the last 12 months prior to retirement, provided they have completed at least 25 years of service. For those with fewer years of service, the pension will be adjusted proportionately, with eligibility starting from a minimum of 10 years of service.
