Unified Pension Scheme Approved: What It Means for 23 Lakh Govt Employees”

Unified Pension Scheme Approved: This year before the assembly elections in one state and a Union Territory, the government made a big announcement by launching the Unified Pension Scheme (UPS).

This decision comes after several non-BJP-ruled states protested against the New Pension Scheme (NPS).

Minister of Union Information and Broadcasting, Ashwini Vaishnaw announced, “This scheme will benefit 23 lakh central government employees (under the National Pension Scheme).”

The Unified Pension Scheme (UPS) will begin on April 1, 2025, and employees will be able to choose which scheme they want whether it is UPS or NPS.

The Union Cabinet, led by Prime Minister Narendra Modi approved the the UPS. The scheme aims to provide government employees an assured pension, a family pension, and a minimum pension.

Assured Pension: This Unified Pension Scheme assures that Government workers who have worked for at least 25 years will get a pension of 50% of their average basic salary for the last 12 months before they leave.

The scheme is also applicable to shorter service periods, a minimum of 10 years of service.

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The family assured Pension: If the employees die then their family will receive a 60% pension of the last amount they drawn.

Minimum Assured Pension: Government employees who work for at least 10 years will get Rs 10,000 a month after they retire.

With the introduction of UPS, the contribution of employees of 10% and the central government contribution of 14% will now be increased to 18.5%.

Mr Vaishnaw added, “Some central employees met with the Prime Minister today. They were with the UPS in the meeting.”

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Prime Minister Narendra Modi said the centre “proud of the hard work of all government employees who contribute significantly to national progress.”

He further said, “The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future.”

The finance ministry last year created a committee after protests from several non-BJP-ruled states claimed to revert the Old Pension Scheme.

The committee was formed under Finance Secretary TV Somanathan to review the pension scheme for government workers and suggest changes based on that.

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