New Delhi: After the Union Cabinet on Saturday approved the Unified Pension Scheme (UPS) for government employees, which will provide an assured minimum pension and a family pension, Prime Minister Narendra Modi said that the new scheme will ensure dignity and financial security for government employees.
“We are proud of the hard work of all government employees who contribute significantly to national progress. 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 Prime Minister said in a post on X.
Around 23 lakh Central government employees stand to benefit from the Unified Pension Scheme. These employees will now have the option to choose between the New Pension Scheme (NPS) and the Unified Pension Scheme.
The state governments will also be given the option to opt for the Unified Pension Scheme. If the state governments opt for UPS, the number of beneficiaries will be around 90 lakh.
The scheme will be effective from April 1, 2025.
Hailing the decision of the Cabinet chaired by Prime Minister Modi, Union Home Minister Amit Shah said in a post on X: “Congratulations to our central government employees on the approval of the Unified Pension Scheme by PM Shri @narendramodi Ji in the Union Cabinet today. With the approval of the scheme, the Modi govt has reiterated its commitment to the financial security of our central government employees, who form the backbone of the nation’s governance.”
As per the Cabinet decision, Central government employees will be given the option of choosing between NPS and UPS. The existing Central government NPS subscribers will also be given the option to switch to UPS.
Highlights of Unified Pension Scheme:
* Assured pension of 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years
* Proportionate for lesser service up to a minimum of 10 years of service
* Assured Family Pension @ 60 per cent of pension of the employee immediately before her/his demise
* Assured Minimum Pension @ Rs 10,000 per month on superannuation after minimum 10 years of service
(IANS)