India unveils new pension scheme for government employees; here are its key features

Prime MinisterNarendra Modi's government on Saturday (Aug 24) announced a new pension scheme for government employees, called the Unified Pension Scheme (UPS). The central government employees will have the option to choose between the National Pension Scheme (NPS) or the UPS.

#WATCH | Union Minister Ashwini Vaishnaw says, "Today the Union Cabinet has approved Unified Pension Scheme (UPS) for government employees providing for the assured pension...50% assured pension is the first pillar of the scheme...second pillar will be assured family… pic.twitter.com/HmYKThrCZV — ANI (@ANI) August 24, 2024

The employees currently subscribed to the old NPS scheme will also be given the option to switch to the new scheme.

While announcing the scheme, Union Minister Ashwini Vaishnaw said that about 2.3 million employees will get benefits under the new regime.

“Today the Union Cabinet has approved Unified Pension Scheme (UPS) for government employees providing for the assured pension…50% assured pension is the first pillar of the scheme…second pillar will be assured family pension…About 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS)…There will be an option for the employees to opt between NPS and UPS…” the minister said.

What are the key features of the UPS?

In the new pension scheme, 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation/retirement for a minimum qualifying service of 25 years will be considered the average pension.

The Assured Family Pension for the employees will be 60 per centof the pension immediately before her/his demise.

Assured Minimum Pension of Rs 10,000 per month on superannuation after a minimum of 10 years of service.

(With inputs from agencies)