United Pension Scheme (UPS) Features & Benefits
Unified Pension Scheme Govt of India
Assured Pension: Under this scheme, retirees will receive a pension amounting to 50 per cent of the average basic pay drawn over the last 12 months before retirement, for a minimum qualifying service of 25 years. The pension will be proportionate for those with shorter service periods, with a minimum requirement of 10 years of service.
Assured Family Pension: In the event of an employee’s death, their family will be eligible to receive 60 per cent of the pension amount that the employee was receiving immediately before their death. This ensures financial security for the employee’s dependents.
Assured Minimum Pension: The new scheme guarantees a minimum pension of Rs 10,000 per month after a minimum of 10 years of service, providing a safety net for employees with lower salaries.
UPS – 5 Key Features of the Scheme
The salient features of the UPS are:
- 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.
- Assured family pension: @60% of pension of the employee immediately before her/his demise.
- Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.
- 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
- lump sum payment at superannuation in addition to gratuity 1/10th 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