United Pension Scheme - Summary
The United Pension Scheme (UPS) has been introduced by the Union Cabinet and will officially start on April 1, 2025. This scheme promises government employees a secure pension after they retire.
Key Features of the Unified Pension Scheme
Assured Benefits and Inflation Protection
- Assured pension: Under the UPS, employees will receive a pension amounting to 50 percent of their average basic pay during the last 12 months before retirement, provided they have completed a minimum of 25 years of service. If an employee has served less than 25 years, the pension amount will reduce in line with their service, with a minimum requirement of 10 years of service to qualify.
- Assured minimum pension: Employees retiring after serving for at least 10 years will receive an assured minimum pension of ₹10,000 per month under the UPS.
- Assured family pension: Upon the retiree’s death, their family will be entitled to receive 60% of the last pension drawn, ensuring continued financial support.
- Inflation indexation: The UPS includes a dearness relief provision for the mentioned pensions, which will be adjusted according to the All India Consumer Price Index for Industrial Workers, similar to the calculation for serving employees.
- Lumpsum payment at superannuation: In addition to gratuity, retirees will also receive a lumpsum payment calculated as one-tenth of their monthly salary (including dearness allowance) for every six months of completed service, starting from the date of retirement.
This comprehensive scheme aims to benefit government employees and their families in a more secure way. For more details and to get a PDF version of this information, be sure to download the document below.
