Exciting news for central government employees! The government has announced the implementation of the Unified Pension Scheme (UPS), set to launch on April 1, 2025. This major reform, aimed at balancing fiscal policies with employee benefits, is expected to positively impact nearly 23 lakh central government employees.
Key Highlights of the Unified Pension Scheme (UPS)The Pension Fund Regulatory and Development Authority (PFRDA) has officially issued a notification regarding the new scheme. With UPS coming into effect, employees will have the option to choose between the existing National Pension System (NPS) and the newly introduced pension scheme.
Assured Pension: Under the UPS, employees will receive 50% of their average basic salary from the last 12 months before retirement as a guaranteed pension.
Minimum Pension Guarantee: Employees with a minimum of 10 years of service will receive a fixed pension of at least ₹10,000 per month.
Government Contribution: The government will contribute 18.5% of the employee’s basic salary to the scheme, while employees will contribute 10%. This is a significant increase compared to NPS, where the government contributes 14%.
Flexibility for Employees: Central government employees covered under NPS will have the choice to opt for UPS, offering them greater financial security post-retirement.
One of the key features of the UPS is the introduction of a robust family pension system. In case of the employee’s demise, their family will receive 60% of the pension amount, ensuring financial stability for their dependents.
How to Enroll in the Unified Pension Scheme?Enrolling in the new pension scheme is simple and convenient. Employees can submit their nomination and claim forms either online or offline.
Online Enrollment: Eligible employees can apply through the Prote CRA portal () starting April 1, 2025.
Offline Application: Employees also have the option to submit physical forms at designated offices.
The government had previously announced the Unified Pension Scheme as a new pension structure for central employees under NPS on January 24, 2025. With its implementation just around the corner, this scheme promises to provide financial security and long-term benefits to central government employees and their families.
Stay updated for further details and ensure timely enrollment to secure your pension benefits!
