Unified Pension Scheme Explained: The Unified Pension Scheme (UPS) is going to be implemented for Central Government Employees from 1 April 2025. This scheme has been brought to provide more financial security to the employees working under the National Pension System (NPS). Those government employees who have been in service for at least 10 years can avail the benefit of this scheme.

The special thing is that under UPS, 50% of the average basic salary of 12 months before retirement will be available as a pension. Let's know every important thing related to this scheme.
Features of Unified Pension Scheme (UPS):

This scheme will be optional under NPS for existing and new employees of the Central Government.

Employees will have to contribute 10% of their basic salary and DA every month.

To choose this scheme, the government employee will have to apply within 30 days of his joining.

Employees who have been working for more than 12 months can also enroll in it within the next three months.

Which government employees will get the benefit?

An employee who completes 10 years of service will get a minimum pension guarantee of Rs 10,000 every month.

Employees retiring after 25 years of service will get 50% of their average salary for the last 12 months as pension.

If the employee dies, his family will be given 60% of the last pension as a family pension.

How to get a retirement fund and pension?

Under UPS, employees will get a lump sum amount on retirement, which will be 10% of their last basic salary and DA. If an employee takes voluntary retirement (VRS) after working for 25 years, he will get a pension only when his normal retirement age is completed.

If someone takes VRS at the age of 55 and his retirement age is 60 years, then he will get a pension only after 60 years. This scheme will keep on getting revised based on dearness allowance (DA), so that pensioners get relief from rising inflation.

The Unified Pension Scheme has been specially designed for the financial security of low-paid government employees. It includes benefits like guaranteed pension, family pension and minimum pension, which will help in financial strength after retirement. If you are a central government employee, then definitely check the option of enrollment in UPS before April 1.

Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.