- विज्ञापन -
New Delhi: The Union Finance Ministry has officially announced the implementation of the Unified Pension Scheme (UPS) as an option under the National Pension System (NPS) for Central government employees, effective from April 1, 2025. This new scheme aims to provide guaranteed retirement benefits to eligible employees.
According to the Finance Ministry’s notification, the UPS will apply to Central government employees enrolled in the NPS who opt for this scheme. The Pension Fund Regulatory and Development Authority (PFRDA) is expected to issue regulations to facilitate the operationalization of the UPS.
Under the new scheme, employees who have served for at least 25 years will receive a pension equivalent to 50% of their average basic pay for the 12 months preceding their retirement. Those with more than 10 years but less than 25 years of service will receive a proportionate pension.
The framework for the UPS was developed after consultations within the joint consultative machinery, which serves as a platform for Central government staff to address concerns with the government. On August 24, 2024, the Union cabinet, led by Prime Minister Narendra Modi, approved this new pension policy for approximately 2.3 million Central government employees, responding to requests from staff unions for guaranteed retirement benefits.
In April 2023, the government established a high-level committee, chaired by cabinet secretary-designate T.V. Somanathan, to revise the existing pension system, known as the new pension scheme (NPS). This decision came in response to growing dissatisfaction, which had become a significant political issue, especially in states governed by opposition parties that reverted to the previous old pension scheme (OPS), which had placed a financial burden on the government.
