The Government of India (GoI) has approved the Unified Pension Scheme (UPS), a move that is expected to benefit approximately 23 lakh Central Government employees. The UPS aims to provide a more streamlined and predictable pension system for government employees.
The Unified Pension Scheme (UPS), recently approved by the Government of India, is a significant development aimed at providing a more secure and predictable retirement for government employees.
The scheme assures 50% of the average basic salary for the last 12 months before retirement as a pension for government employees who complete a minimum of 25 years in service. This benefit will be proportionate for shorter service periods, with a minimum requirement of 10 years of service.
In the unfortunate event of an employee’s death, their family will receive 60% of the pension the employee was receiving at the time of their passing.
The scheme guarantees a minimum pension of ₹10,000 per month after retirement for government employees with at least 10 years of service. This provision ensures a basic level of financial security for all retirees, regardless of their salary levels.
Unified Pension Scheme Benefits:
The UPS provides a clear and reliable pension structure, ensuring that Central Government employees have a predictable income stream after retirement.
The assured family pension provides a safety net for the families of employees in the event of their untimely demise.
The assured minimum pension ensures that even employees with lower salaries receive a reasonable pension amount, helping to protect them against financial hardship in their retirement years.
Unified Pension Scheme (UPS) Impact:
The UPS is expected to benefit approximately 23 lakh central government employees.
It is seen as a positive step towards enhancing the social security of government employees and their families.
The scheme may also encourage greater employee retention and loyalty within the government sector.
Overall, the Unified Pension Scheme represents a significant step towards creating a more equitable and secure retirement system for government employees in India.