Unified Pension Scheme gets union cabinet's nod, set to benefit 23 lakh govt employees
Under this scheme, government employees will be eligible for full pension with an eligibility service length of 25 years.
Under this scheme, government employees will be eligible for full pension with an eligibility service length of 25 years.
Under this scheme, government employees will be eligible for full pension with an eligibility service length of 25 years.
New Delhi: The Union Cabinet on Saturday approved the Unified Pension Scheme (UPS), which guarantees a pension of 50 per cent of the average basic pay drawn over the last 12 months before superannuation for 23 lakh government employees. Information and Broadcasting Minister Ashwini Vaishnaw announced that under this scheme, government employees will be eligible for full pension with an eligibility service length of 25 years. For those with a lesser service period, the pension will be proportionate, with a minimum requirement of 10 years of service.
The UPS is now an option for National Pension System (NPS) subscribers, which applies to government employees who joined after April 1, 2004. The NPS is based on a contribution model, unlike the defined benefit system that was applicable to employees before the NPS. The new UPS will be effective from the beginning of the next financial year.
Last year, the finance ministry set up a committee under Finance Secretary T V Somanathan to review the pension scheme for government employees and suggest any changes, if needed, in light of the existing framework and structure of the NPS.
Several non-BJP-ruled states have decided to revert to the DA-linked Old Pension Scheme (OPS) and also employee organisations in some other states have raised demand for the same.
Briefing media, Cabinet Secretary-designate TV Somanathan said the new scheme is applicable from April 1, 2025. The benefits of the UPS are applicable for those retired and retiring till March 31, 2025, with arrears, he added.
(With PTI Inputs)