UNIFIED PENSION SCHEME FOR CENTRAL GOVT EMPLOYEES

[MOHAN P]

For Information:

Cabinet approves Unified Pension Scheme

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved the Unified Pension Scheme (UPS).

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

          1/10th 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

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Posted On: 24 AUG 2024 8:33PM by PIB Delhi

[MOHAN P]

Unified Pension Scheme (UPS): Key Features and Benefits Explained

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Understanding the Unified Pension Scheme: A New Era for Government Employees

The Unified Pension Scheme (UPS), recently approved by the Union Cabinet, marks a significant shift in the pension landscape for central government employees. Set to launch on April 1, 2025, this scheme promises financial security and stability for retirees and their families. Here’s a closer look at the key features and benefits of the UPS:

Key Features of the Unified Pension Scheme

• Assured Pension: Government employees with at least 25 years of service will receive a pension of 50% of their average basic pay during their last 12 months of service. The pension will be proportionate for those with fewer years, with a minimum of 10 years required to qualify.
• Family Pension: In the unfortunate event of a retiree’s death, their dependents will receive 60% of the last drawn pension, ensuring continued financial support.
• Minimum Pension Guarantee: No retiree will receive less than ₹10,000 per month, providing a safety net for those with lower earnings during their career.
• Lump-Sum Retirement Payment: Retirees will also receive a one-time payment equivalent to 1/10th of their last drawn monthly pay (including DA) for every six months of service completed

The UPS addresses long-standing demands for a more predictable and secure pension system. By guaranteeing a fixed pension amount and indexing it to inflation, the scheme ensures that retirees can maintain their standard of living. Additionally, the provision for family pensions offers peace of mind, knowing that dependents will be financially supported.

Conclusion

The Unified Pension Scheme is a game-changer for government employees, offering a robust and reliable pension system. As the scheme rolls out, it promises to bring much-needed financial security and stability to millions of retirees and their families.

-All India RBI Oers Pensioners Forum.

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[Ramani Konnayar]

If CPI linked DA is given, similar to the one available to those in service, in what way the Unified Pension Scheme is different from the Old Pension Scheme? 

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[JSOMA SHEKARA]

As per above scheme it seems the Central Govt is going to discontinue commutation scheme. Instead a lump sum amount is paid for which there will be no recovery from monthly pension.

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[Amiya Kumar Mishra]

What about provident fund??

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[Ramani Konnayar]

One major difference between the old pension scheme and the UPS is that, unlike in the OPS, the entire contribution made by the employee (@10% of basic pay every month) will go to the Pension Fund under UPS, as the UPS will continue to be managed by a Fund, as in the case of Public Sector Banks. 

Yet, UPS is far better than NPS and in all probability extended to PSBs as was done in respect of NPS. 

K N Ramani

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[Ramani Konnayar]

As already mentioned in my previous mail, the deduction of 10% from the pay every month will form the employee's contribution to the Unified Pension Fund

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[JSOMA SHEKARA]

UPS is amix of both OPS and NPS.

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[ashok goel]

Dear friends

Whether any one help that in pension scheme for resignees 5 years weightage in qualifying sevice will be added. In 2010 option originally it was not permitted afterwards it was added send please apprise for new resignees. 

Ashok...@gmail.com.

Thanks

On Sun, 25 Aug, 2024, 5:40 am MOHAN P, <moha...@gmail.com> wrote:

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[MOHAN P]

Mr Ashok Goel

Answer is No.No additional notional service allowed to be added.

Regards

Mohan.P

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[MOHAN P]

Comparison.

OPS- NPS-UPS

see below:

https://airbiopf.org/2024/08/27/comparing-old-pension-scheme-national-pension-system-and-unified-pension-scheme/

On Sat, 24 Aug, 2024, 8:10 pm MOHAN P, <moha...@gmail.com> wrote:

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[Niranjan Cn]

Sirs,

IT is a good scheme now ; Governments have to contribute 18% monthly towards UPS - so that future burden burden will not be there unline OPS - where pension is paid from budget - which takes away big part .

Niranjan

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[Hans Raj Manuja]

UPS is not applicable to bankers, working or retired. So many mails are being exchanged in this blog. It is causing more of confusion than clarification !

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[anbumani thiagarajan]

This scheme is launched to win elections. Bank pensioners have been fighting for the past 23 years to get justice without any major relief.

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