Central Government Announces Unified Pension Scheme (UPS) with Assured Benefits for Employees

The central government has announced a new pension scheme. It will be named the Unified Pension Scheme (UPS). This decision was taken in the cabinet meeting. Under this scheme, if a government employee has worked for a minimum of 25 years, then 50 percent of the average basic pay of the last 12 months of the job before retirement will be given as pension.

If a pensioner dies, his family will get 60 percent of the pension received till the time of the employee's death. If someone leaves the job after 10 years, he will get a pension of Rs 10,000.

Union Minister Ashwini Vaishnav said that today the Union Cabinet has approved the Unified Pension Scheme (UPS) for government employees. With this scheme, about 23 lakh employees of the central government will benefit from the Unified Pension Scheme. Employees will have the option to choose either NPS or UPS. Under the Unified Pension Scheme, the benefit of inflation indexation will be available.

Ashwini Vaishnav said that the Unified Pension Scheme will be implemented in the coming time. He said that this scheme has 5 pillars. 50 percent assured pension is the first pillar of this scheme and the second pillar will be assured family pension. Under the Unified Pension Scheme, after at least 10 years of service, a guaranteed minimum pension of Rs 10,000 per month will be given on retirement.

Ashwini Vaishnav said, “We had several meetings with the Joint Consultative Mechanism (JCM) of the Central Government. After this, discussions were also held on what kind of schemes are applicable in many countries of the world. Meetings were held with RBI to understand India's economy and the budget of the central government. After this, the Unified Pension Scheme was implemented.”

Vaishnav further said that there was a demand from the employees that they should be given an assured pension. We researched this demand and have brought a 50 percent assured pension under this scheme.