NE NEWS SERVICE
NEW DELHI, AUG 24
Ahead of the assembly elections in Haryana and Jammu and Kashmir, the Union cabinet on Saturday approved the Unified Pension Scheme (UPS) which is expected to benefit over 23 lakh government employees who joined service under the National Pension System (NPS).
Briefing the cabinet decision, Union Minister Ashwini Vaishnaw said the new scheme will be implemented from April 1, 2025 and employees will have the option to choose between the NPS or UPS.
- 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
The cabinet meeting was chaired by Prime Minister Narendra Modi.
An official statement has listed assured pension, family pension, minimum pension and inflation indexation as the salient features of the UPS. Government employees will now be eligible to get 50 per cent of the average basic pay drawn over the last 12 months before the superannuation as pension.
We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future.…
— Narendra Modi (@narendramodi) August 24, 2024
For this full pension or 50 per cent of pay as the pension, the eligibility service length will be 25 years.
“Today the Union Cabinet has approved the unified pension scheme (UPS) for government employees providing for the assured pension. Fifty per cent assured pension is the first pillar of the scheme. Second pillar will be assured family pension. About 23 lakh employees of the central government would benefit from the unified pension scheme (UPS). There will be an option for the employees to opt between NPS and UPS,” Vaishnaw said.
Under the UPS, immediately after the demise of the employee, his family will get 60 per cent of the last-drawn pension amount. The scheme also assures Rs 10,000 per month after retirement for government employees after a minimum of 10 years of service.
The finance ministry had set up a committee last year to review the pension scheme for government employees and suggest any changes, if needed. The committee was formed in light of the existing framework and structure of the National Pension System.
Several non-BJP-ruled states have decided to revert to the DA-linked Old Pension Scheme (OPS) and also employee organisations in some other states have raised demand for the same.
62,267 serving employees of Southern Rly will benefit from UPS
Presently, Southern Railway has a total of 81,311 employees on its rolls. Of this, 18,605 employees are covered by the Old Pension Scheme (Gazetted Staff- 689 & Non-Gazetted Staff – 17,916).
Of the total employee strength in Southern Railway, a total of 62,706 employees are covered under New Pension Scheme presently which includes 439 Gazetted and 62,267 non-gazetted staff. These employees will become eligible for exercising option for the Unified Pension Scheme thus benefiting from assured pension.
