In order to offer government workers an assured pension, a family pension, and a guaranteed minimum income, the central government launched the Unified Pension Scheme (UPS). The UPS, which will go into effect on april 1, 2025, offers increased financial stability by providing a pension to those with at least 25 years of service that is equal to 50% of the average basic pay taken during the previous 12 months.
 
It also promises a minimum pension of Rs 10,000 per month and a family pension at 60% of the employee's pension. In order to better protect retirees from growing expenses, the plan also incorporates inflation-linked increases based on the All india Consumer Price Index for Industrial workers (AICPI-IW).
 
Let's now examine the scheme's features and advantages in more detail:
 
What is the Unified Pension Scheme (UPS)?
The UPS is a new pension policy for government employees that guarantees:

An assured pension based on the employee’s average basic pay.

A family pension to support the employee’s dependents in case of death.

A minimum pension to ensure no retired employee receives less than Rs 10,000 per month.

What are the key benefits?
Employees who have completed at least 25 years of service will get a pension equal to 50% of their average basic pay over the last 12 months before retiring.

For those under 25 years of service, the pension will be proportionate to the years served, with a minimum of 10 years of service required for eligibility.

Assured family pension: In case of an employee’s death, their family will receive a pension worth 60% of their last drawn pension.

Assured minimum pension: Retired employees with at least 10 years of service will receive a minimum pension of Rs 10,000 per month, regardless of their earnings during service.

Lump-sum payment: In addition to the pension, employees will receive a lump-sum payment at retirement.

This will be calculated as 1/10th of their last drawn monthly pay (including DA) for every six months of service completed. This lump sum will not reduce the amount of assured pension.

Inflation protection: The pension will be indexed to inflation, ensuring it rises with the cost of living, similar to how serving employees’ pay increases with inflation (Dearness Relief).
 
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Unified Pension Scheme

G GOWTHAM

25/08/2024 08:12 AM