Narendra Modi Govt Launches Unified Pension Scheme

The Narendra Modi government approved the Unified Pension Scheme (UPS) on Saturday. The big announcement was made by Union Cabinet Minister Ashwini Vaishnaw, which will directly benefit more than 23 lakh Central Government employees.

The Unified Pension Scheme (UPS) will be implemented from April 1, 2025 and before the new financial year, all norms will be finalized for it. This new scheme will cover all individuals who retired under the National Pension System (NPS) since 2004.

Addressing a presser, Ashwini Vaishnaw said the Unified Pension Scheme offers several benefits like:

Assured Pension

Members receive 50% of the average basic pay drawn over the last 12 months before retirement, provided they have a minimum qualifying service of 25 years. For those with less than 25 years but at least 10 years of service, the pension is proportionate.

Assured Family Pension

In case of the employee's demise, their family is entitled to receive 60% of the pension that the employee was receiving immediately before passing away.

Assured Minimum Pension

Upon superannuation after at least 10 years of service, members are guaranteed a minimum pension of ₹10,000 per month.

Inflation Indexation

The scheme includes inflation indexation for assured pensions, family pensions, and minimum pensions. Dearness Relief is based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), similar to serving employees.