Govt Notifies Unified Pension Scheme for Government Employees, To Be Effective From April 1, 2025 

Last Updated: January 25, 2025, 18:36 IST

This Unified Pension Scheme (UPS), which integrates facets of both the Old Pension Scheme (OPS) and the National Pension System (NPS), intends to supply staff members with an assured pension plan, using monetary security and self-respect after retired life.

In a spots transfer to guarantee monetary safety and security for Central Government staff members post-retirement, the Centre has actually revealed the execution of the Unified Pension Scheme (UPS). This brand-new plan, which integrates facets of both the Old Pension Scheme (OPS) and the National Pension System (NPS), intends to supply staff members with an assured pension plan, using monetary security and self-respect after retired life. The plan will certainly enter into impact from April 1, 2025, according to a federal government alert provided on January 24, 2025.

The Unified Pension Scheme will put on Central Government staff members currently signed up in the National Pension System (NPS). However, the plan will certainly be readily available just to those that satisfy specific standards, as laid out in the alert. Employees should have finished a minimum of one decade of certifying solution to be qualified for the plan.

Eligibility

Under the UPS, staff members will certainly be qualified for a guaranteed payment under the list below problems:

Superannuation: Employees that retire after finishing at the very least one decade of certifying solution will certainly obtain a guaranteed pension plan from the day of their retired life.

Retirement under FR 56( j): Employees retiring under federal government arrangements, yet scot-free, will certainly likewise get approved for the guaranteed payment beginning with the day of their retired life.

Voluntary Retirement: Employees going with volunteer retired life after 25 or even more years of solution will certainly obtain a payment beginning with the day they would certainly have gotten to superannuation, had they proceeded in solution.

However, the Unified Pension Scheme will certainly not put on staff members that are disregarded, gotten rid of, or surrender from solution. In such instances, they will certainly not be qualified for the UPS.

Payout Calculation and Benefits

The UPS supplies a number of rates of payment based upon years of solution:

Full Assured Payout: Employees with 25 or even more years of certifying solution will certainly obtain half of their ordinary fundamental pay from the last year of solution.

Proportional Payout: Employees with much less than 25 years of solution will certainly obtain a symmetrical payment based upon their certifying solution.

Minimum Guaranteed Payout: Employees with 10 or even more years of solution are guaranteed a minimal payment ofRs 10,000 monthly.

Additionally, for staff members going with volunteer retired life after 25 years of solution, the payment will certainly start from the day they would certainly have gotten to the age of superannuation.

Family Payout in Case of Death

In situation of the pensioner’s fatality after superannuation, a family members payment will certainly be made. This payment will certainly be 60 percent of the last permissible payment and will certainly be given to the legitimately joined partner of the deceased. The payment is made according to the day of superannuation, volunteer retired life, or retired life under FR 56( j).

Dearness Relief (DR) and Other Provisions

Dearness Relief (DR), which is generally suitable to offering staff members, will certainly be reached both the guaranteed and family members payments under the UPS. DR will certainly be given when the payment begins.

Furthermore, a round figure settlement of 10 percent of the month-to-month emoluments (fundamental pay + dearness allocation) will certainly be attended to each 6 months of finished solution at the time of superannuation. This round figure will certainly not influence the guaranteed month-to-month payment.

The plan intends to incorporate the advantages of the Old Pension Scheme with the framework of the National Pension System, using an extra foreseeable and safe retirement for public servant.

Effective Date and Transition

The Unified Pension Scheme will certainly be totally functional from April 1, 2025, providing staff members an alternative to pick in between the NPS and the brand-new UPS. It likewise consists of arrangements for public servant currently retired yet going with this brand-new system. For them, the pension plan authority will certainly apply a suitable top-up settlement system to guarantee a smooth change right into the brand-new structure.

The execution of the UPS notes a considerable action in guaranteeing that public servant are economically safe in their retired life, uniting the advantages of both OPS and NPS in an organized and guaranteed fashion.