Govt Expedites Rollout Of Unified Pension Scheme, Targets April 2025 Launch

Unified Pension Scheme: The Department of Expenditure is leading the development of the UPS, with several other departments playing critical roles in its implementation

The UPS is a top priority for the government and is set to benefit millions of central government employees

Source : FreePik

The government is accelerating efforts to implement the Unified Pension Scheme (UPS) ahead of the 2025 fiscal year. According to a report by The Economic Times, officials aim to issue a formal notification of the scheme by October 15, 2024, with an expected rollout on April 1, 2025. The UPS is a top priority for the government and is set to benefit millions of central government employees.

Cabinet Secretary TV Somanathan, who chairs the transition process, has been conducting regular meetings with key ministries and departments to ensure a smooth implementation of the new pension system. Somanathan, who also led a committee that reviewed the National Pension Scheme (NPS), is overseeing coordination efforts to finalise the details of the UPS.

Information and Broadcasting Minister Ashwini Vaishnaw earlier confirmed that the UPS will benefit about 2.3 million central government employees. If state governments adopt the scheme, the total number of beneficiaries could rise to nine million.

The Department of Expenditure is leading the development of the UPS, with several other departments playing critical roles in its implementation. The Department of Personnel and Training will assess employees’ preferences, as current central government employees will need to choose whether to switch to the UPS or remain under the National Pension Scheme (NPS). This process is expected to be completed before the scheme’s April 2025 launch.

Other departments, including the Department of Pension and Pensioners' Welfare, are involved in finalising the scheme’s finer details. The Department of Administrative Reforms and Personnel Grievances is drafting new service rules, while the Pension Fund Regulatory and Development Authority (PFRDA) is working on the investment strategy for the pension corpus. Additionally, the National Securities Depository Ltd (NSDL) is evaluating the operational requirements for the UPS.