The Government of India has announced the implementation of the Unified Pension Scheme (UPS) for central governemnt employees. Issuing an official notification on January 24, 2025, the Centre has finally notified the UPS for employees already enrolled in the National Pension Scheme (NPS).
The UPS is a combination of elements of both the Old Pension Scheme (OPS) and NPS and intends to provide retirees a guaranteed pension. The UPS will be effective from April 1, 2025. The employees enrolled in the NPS will be provided an option to be included in the UPS.
Eligibility And Payouts
The scheme states that employees who retire after finishing a minimum of ten years of service shall be entitled to receive the assured payout from the date of superannuation. These employees will get a minimum payout of Rs 10,000 per month.
Further, employees retired by the government under FR 56(j), excluding penalty provisions, would be eligible for payout from the retirement date.
Individuals selecting voluntary retirement post completing a minimum of 25 years of service shall receive the payout from the date they would have superannuated. These employees will receive 50 per cent of their average basic pay over the last 12 month ahead of superannuation as the full assured payout.
Employees with less than 25 years of service will be entitled to receive a proportional payout.
However, the scheme will not be applicable to employees who are dismissed or removed, or resign from the service. In such a case, the UPS option will not be available.
Demise And Dearness Relief
In the event of the death of the payout holder after superannuation, the system will provide a family payout at 60 per cent of the last admissible payout. This payout will be given to the legally wedded spouse of the deceased, as per the superannuation date, voluntary retirement, or retirement under FR 56(j).
Dearness relief will also be valid on the assured payout and family payout, like the Dearness Allowance given to serving employees. However, this will be only be disbursed once the payout commences.
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