Unified Pension Scheme PDF

Unified Pension Scheme

Unified Pension Scheme (UPS) has been approved by the Union Cabinet chaired by Prime Minister Narendra Modi. This scheme will be effective from April 1, 2025, and will benefit 23 lakh central government employees.

Unified Pension Scheme: Assured Pensions, Inflation Indexation

1. Assured pension: This amount would be equivalent to 50 percent of an employee’s average basic pay over the last 12 months before retirement, provided they have completed a minimum qualifying service of 25 years. For employees with less than 25 years of service, the amount would decrease proportionately, with the minimum requirement being 10 years of service.
2. Assured minimum pension: In case an employee retires after 10 years of service, they will get an assured minimum pension of Ra 10,000 per month under UPS.
3. Assured family pension: Once the retiree dies, their immediate family will be eligible for 60% of the last pension they drew.
4. Inflation indexation: Under UPS, there will also be a dearness relief in case of the above-mentioned pensions. This will be calculated based on the All India Consumer Price Index for Industrial Workers, just like for serving employees.
5. Lumpsum payment at superannuation: This payment would come in addition to the gratuity. It will be calculated as one-tenth of the monthly emolument (pay plus dearness allowance) as of the date of retirement, for every six months of service completed.

UPS – 5 Key Features of the Scheme

The salient features of the UPS are:

1. Assured pension: 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period upto a minimum of 10 years of service.
2. Assured family pension: @60% of pension of the employee immediately before her/his demise.
3. Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.
4. Inflation indexation: on assured pension, on assured family pension and assured minimum pension Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees
5. lump sum payment at superannuation in addition to gratuity 1/10^th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service this payment will not reduce the quantum of assured pension

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