Main features of the Unified Pension System:
Guaranteed pension: Under the UPS, retired government employees will receive 50% of their average salary for the last 12 months prior to retirement, provided they have completed a minimum of 25 years of service.
Insured Family Pension: In the event of the death of a government employee, the plan guarantees that 60% of the pension amount will be allocated to the spouse.
Minimum Insured Pension: Employees will be entitled to a guaranteed minimum pension of ₹10,000 per month upon retirement, applicable after 10 years of service.
Image: GDP
Indexation for inflation: The plan includes provisions for indexation of insured pensions, family pensions and the minimum pension to inflation, ensuring that benefits maintain their value over time.
Scheme options: Central government employees will have the option to choose between the new Unified Pension System and the existing New Pension System.
Image: GDP
Pension contribution: The staff contribution to the plan will remain at 10%, unchanged from the previous structure. However, the central government’s contribution will be reassessed every three years.
Spent: Financial implications include a total expense of ₹800 crore in arrears, with an estimated initial annual cost of ₹6,250 crore for the scheme.
Implementation: The UPS is scheduled to go into effect on April 1, 2025. It will also apply retroactively to government employees who retired since 2004.
Disclaimer
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.