The NPS had replaced the OPS on January 1, 2004. Those who joined the government services after this date were put under the NPS.
The Unified Pension Scheme (UPS) was approved by the Union Cabinet on Saturday, August 24. The scheme will come into effect on April 1, 2025. With this, the government employees will be provided an assured pension following their retirement.
This follows a wave of criticism surrounding the New Pension Scheme (NPS). Unlike the NPS, under the UPS the retirees are promised a fixed pension amount.
The NPS had replaced the OPS on January 1, 2004. Those who joined the government services after this date were put under the NPS.
Union Information and Broadcasting Minister Ashwini Vaishnaw highlighted five key features of the UPS.
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.
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.
Assured family pension: Once the retiree dies, their immediate family will be eligible for 60% of the last pension they drew.
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.
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.
