Unified Pension Scheme Explained: If you are in a government job, then this news is very important for you. From today i.e. 1 April 2025, the Unified Pension Scheme (UPS) of the Central Government has come into effect. But the big question is whether you will get the benefit of a guaranteed pension under this scheme or not. In this news, we will tell you which employees will be entitled to a guaranteed pension under UPS. Who will not get this pension? What will be the pension amount and what will the family get? Let's know…

What is the Unified Pension Scheme (UPS)?

This is a fund-based pension scheme introduced by the Central Government under the National Pension System (NPS). Its purpose is to give a guaranteed pension to government employees. The Unified Pension Scheme has been brought for the financial security of government employees. In this, benefits like guaranteed pension, family pension, and minimum pension are going to be available after retirement.

What are the terms of a guaranteed pension?

Employees will have to contribute 10% of their basic salary and dearness allowance (DA).

The government will also contribute to this, which will create a fixed retirement fund.

Under this scheme, a monthly pension of at least ₹ 10,000 will be guaranteed.

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.

Who will get the benefit of UPS?

If you choose the UPS option, then you have to fulfill some conditions. Like at least 10 years of service should be completed at the time of retirement. If you retire under FR 56 (j) (without any punitive action), you will still get a pension. If you take voluntary retirement after completing 25 years of service, you will still get the benefit of this scheme.

Who will not get a guaranteed pension?

If your job is less than 10 years, then you will not get the benefit of UPS.

If you have been dismissed or removed from service, then you will not be eligible for this scheme.

If you leave the job yourself (resigned), then also you will not get the benefit of UPS.

How much benefit will the family get?

If the employee dies after retirement, then his wife/husband will get 60% of the pension. That is, if the employee was getting a pension of ₹ 10,000, then his family would get a monthly pension of ₹ 6,000.

Is UPS beneficial?

If you want a fixed pension after retirement, then this scheme can be beneficial for you. Especially for those employees who want financial security and feel the need for a fixed income every month. However, it is important to keep in mind that under this scheme, contribution will be deducted from your salary every month.

Now that UPS has been implemented, will you get the benefit of this scheme? If your job tenure and conditions are in line with this scheme, you will get a guaranteed monthly pension of ₹10,000.

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.