Last updated on August 29th, 2024 at 10:58 am
The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved the Unified Pension Scheme (UPS) to reform the National Pension System (NPS) for Central Government employees.
Assured Pension Benefits
The UPS guarantees an assured pension of 50% of the average basic pay drawn in the last 12 months before retirement, provided the employee has completed a minimum qualifying service of 25 years.
Implementation Date
The new scheme will come into effect from April 1, 2025, aligning pension benefits with current financial and social needs.
Minimum Pension and Family Benefits
Employees with at least 10 years of service will receive a minimum pension of Rs. 10,000 per month. Additionally, the spouse of the retired employee will be entitled to 60% of the pension amount as a family pension.
Additional Provisions
The scheme includes dearness relief on the assured pension, minimum pension, and family pension. A lump sum amount will also be provided at retirement, enhancing the financial security of retirees.
