India’s retirement savings have hit a new milestone, more than 90 million subscribers and growing.
But two pension schemes, the national pension scheme and the Atal pension yojana lead the way.
Both promise security, yet work very differently.
And many are asking why can’t people have more control over their own money?


Explainer: India’s Pension Plans – Why It Matters?

The Indian finance ministry on Saturday (January 25) notified the operationalisation of the Unified Pension Scheme, also known as UPS, for central government employees, effective from April 1.
In a statement, the finance ministry said that the UPS would apply to central government employees who are covered under the National Pension System (NPS) and chose this option under the NPS.
&ldquo;Pension Fund Regulatory and Development Authority (PFRDA) may issue regulations for operationalising the UPS. The effective date for operationalisation of the Unified Pension Scheme shall be April 1, 2025,&rdquo; the statement added.
<h2>What does the UPS offer?</h2>
The UPS would offer 50 per cent of the average basic pay drawn by a central government employee during the 12 months prior to retirement, provided they complete 25 years of service.
Also read | <a href="https://www.wionews.com/business-economy/budget-2025-experts-suggest-income-tax-rationalisation-8652505" rel="dofollow">Budget 2025: Experts suggest income tax rationalisation</a>
Employees with less than 25 years of service but more than 10 years will receive a pension on a proportionate basis.
The contours of the scheme were drawn up following discussions held under the joint consultative machinery, a platform that provides a mechanism for central government staff to resolve differences with the Centre.
In August last year, the Union Cabinet approved the new pension policy for nearly 2.3 million central government employees.&nbsp;
This policy unveiled a framework that guaranteed 50 per cent of basic pay as a monthly pension, responding to requests from central government staff unions who sought guaranteed retirement benefits.
<h2>New vs Old scheme</h2>
Unlike the old pension scheme (OPS), UPS is contributory in nature, wherein employees will be required to contribute 10 per cent of their basic salary and dearness allowance (DA) while the employer's contribution (the central government) will be 18.5 per cent, a report by the news agency PTI said.&nbsp;
Also read | <a href="https://www.wionews.com/business-economy/budget-2025-middle-class-hopes-for-relief-as-tax-reform-takes-centre-stage-8647823" rel="dofollow">Budget 2025: Middle class hopes for relief as tax reform takes centre stage</a>
Under the OPS, effective before January 2004, employees got 50 per cent of their last drawn basic pay as pension.
Employees, under the OPS, were not required to make any contribution. They, however, contributed to the General Provident Fund (GPF). The accumulated amount, along with interest, was paid to the employee at the time of retirement.
As the NPS was less attractive than the OPS, several non-BJP-ruled states decided to go back to the old pension scheme, which offered a DA-linked benefit.
This prompted the Centre to constitute a committee in April 2023 under former Finance Secretary and now Cabinet Secretary-designate TV Somanathan to suggest improvement in the NPS architecture.
(With inputs from agencies)
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Business | UPS would offer 50% of the average basic pay drawn by a central govt employee during the 12 months prior to retirement, provided they complete 25 years of service.

The Indian finance ministry on Saturday (January 25) notified the operationalisation of the Unified Pension Scheme, also known as UPS, for central government employees, effective from April 1. In a statement, the finance ministry said that the UPS would apply to central government employees who are covered under the National Pension System (NPS) and chose this option under the NPS. “Pension Fund Regulatory and Development Authority (PFRDA) may issue regulations for operationalising the UPS. The effective date for operationalisation of the Unified Pension Scheme shall be April 1, 2025,” the statement added. What does the UPS offer? The UPS would offer 50 per cent of the average basic pay drawn by a central government employee during the 12 months prior to retirement, provided they complete 25 years of service. Also read | Budget 2025: Experts suggest income tax rationalisation Employees with less than 25 years of service but more than 10 years will receive a pension on a proportionate basis. The contours of the scheme were drawn up following discussions held under the joint consultative machinery, a platform that provides a mechanism for central government staff to resolve differences with the Centre. In August last year, the Union Cabinet approved the new pension policy for nearly 2.3 million central government employees. This policy unveiled a framework that guaranteed 50 per cent of basic pay as a monthly pension, responding to requests from central government staff unions who sought guaranteed retirement benefits. New vs Old scheme Unlike the old pension scheme (OPS), UPS is contributory in nature, wherein employees will be required to contribute 10 per cent of their basic salary and dearness allowance (DA) while the employer's contribution (the central government) will be 18.5 per cent, a report by the news agency PTI said. Also read | Budget 2025: Middle class hopes for relief as tax reform takes centre stage Under the OPS, effective before January 2004, employees got 50 per cent of their last drawn basic pay as pension. Employees, under the OPS, were not required to make any contribution. They, however, contributed to the General Provident Fund (GPF). The accumulated amount, along with interest, was paid to the employee at the time of retirement. As the NPS was less attractive than the OPS, several non-BJP-ruled states decided to go back to the old pension scheme, which offered a DA-linked benefit. This prompted the Centre to constitute a committee in April 2023 under former Finance Secretary and now Cabinet Secretary-designate TV Somanathan to suggest improvement in the NPS architecture. (With inputs from agencies)

Indian finance ministry notifies Unified Pension Scheme for central govt employees

The Union Cabinet led by Prime Minister Narendra Modi announced a Unified Pension Scheme (UPS) on Saturday (Aug 24), which aims to increase the retirement benefits for 23 lakh central government employees.

The UPS has certain elements of both the Old Pension Scheme (OPS) and the current National Pension Scheme (NPS) that will benefit the employees. The scheme will be effective from April 1, 2025, and will include assured pensions, family pensions, and minimum pensions to provide financial security for government workers after retirement.

Central government employees will be given the option to choose between UPS and NPS. Employees who are already NPS subscribers will be given an option to switch to UPS.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/india-bjp-urges-top-poll-body-to-change-haryana-election-dates-congress-slams-753039">India: BJP urges top poll body to change Haryana election dates, Congress reacts</a>

<h2>Key features of the Unified Pension Scheme</h2>

Assured pension

Employees who subscribe to the UPS with at least 25 years of service will get an assured pension of 50% of their average basic pay over the last 12 months before retirement. Other employees having a minimum of 10 years of service will be eligible for a pension proportionate to their tenure.

Assured family pension

UPS provides an assured family pension after their demise, according to which the employee's spouse will be given 60% of the pension drawn before their death.

Assured minimum pension

Employees who retire before completing 25 years of their service will be assured a minimum pension of&nbsp; Rs 10,000 monthly after retirement with a minimum of 10 years of service.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/amit-shah-chairs-crucial-meeting-to-strengthen-anti-naxal-strategy-officials-of-7-states-attend-753013">Home Minister Amit Shah chairs crucial meeting to strengthen anti-Naxal strategy; officials of 7 states attend</a>

Inflation indexation

For the subscribers of UPS, the assured pension, family pension and minimum pension will be indexed to inflation.

Dearness Relief

Both serving and retired employees under the UPS will get Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).&nbsp;

Lump sum payment on superannuation

Apart from the assured pension, subscribers of UPS will also receive a lump sum payment on superannuation along with gratuity. This payment will amount to 1/10th of the employee's monthly emoluments, which includes pay and Dearness Allowance, as of the date of retirement for every completed six months of service.&nbsp;

(With inputs from agencies)

The Union Cabinet led by Prime Minister Narendra Modi announced a Unified Pension Scheme (UPS) on Saturday (Aug 24), which aims to increase the retirement benefits for 23 lakh central government employees.

The Union Cabinet led by Prime Minister Narendra Modi announced a Unified Pension Scheme (UPS) on Saturday (Aug 24), which aims to increase the retirement benefits for 23 lakh central government employees. The UPS has certain elements of both the Old Pension Scheme (OPS) and the current National Pension Scheme (NPS) that will benefit the employees. The scheme will be effective from April 1, 2025, and will include assured pensions, family pensions, and minimum pensions to provide financial security for government workers after retirement. Central government employees will be given the option to choose between UPS and NPS. Employees who are already NPS subscribers will be given an option to switch to UPS. Also read | India: BJP urges top poll body to change Haryana election dates, Congress reacts Key features of the Unified Pension Scheme Assured pension Employees who subscribe to the UPS with at least 25 years of service will get an assured pension of 50% of their average basic pay over the last 12 months before retirement. Other employees having a minimum of 10 years of service will be eligible for a pension proportionate to their tenure. Assured family pension UPS provides an assured family pension after their demise, according to which the employee's spouse will be given 60% of the pension drawn before their death. Assured minimum pension Employees who retire before completing 25 years of their service will be assured a minimum pension of Rs 10,000 monthly after retirement with a minimum of 10 years of service. Also read | Home Minister Amit Shah chairs crucial meeting to strengthen anti-Naxal strategy; officials of 7 states attend Inflation indexation For the subscribers of UPS, the assured pension, family pension and minimum pension will be indexed to inflation. Dearness Relief Both serving and retired employees under the UPS will get Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). Lump sum payment on superannuation Apart from the assured pension, subscribers of UPS will also receive a lump sum payment on superannuation along with gratuity. This payment will amount to 1/10th of the employee's monthly emoluments, which includes pay and Dearness Allowance, as of the date of retirement for every completed six months of service. (With inputs from agencies)

What is Unified Pension Scheme? Here's what you should know

Prime Minister&nbsp;Narendra 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.&nbsp;

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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.

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“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.

<h2>What are the key features of the UPS?</h2>

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 cent&nbsp;of 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)

Prime Minister Narendra 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.

Prime Minister Narendra 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. Also read: ‘Part of culture,’ Jaishankar schools Western media over PM Modi hugging Putin “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 cent of 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)

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

France's CFDT union is opposed to transport strikes over the Christmas period but will call for new actions in January if the government does not drop a pension reform proposal that would encourage more years of work, its leader said on Sunday.

France's CFDT union is opposed to transport strikes over the Christmas period but will call for new actions in January if the government does not drop a pension reform proposal that would encourage more years of work, its leader said on Sunday. In a major overhaul of its pension scheme, the French government has proposed that people work two years longer to get a full pension, drawing a hostile response from trade unions who said they would step up strike action to force an about-face. The reform-minded CFDT had stayed out of the strike, which has caused travel chaos across the country since Dec. 5. But it said a "red line" had been crossed and called on members to join mass protests on Tuesday. "Let's be clear: CFDT railway workers do not want a blockage during the holidays. Then in January (...) if the text has not changed, the CFDT will continue to mobilise," CFDT Secretary General Laurent Berger told Journal du Dimanche. "We should not make users pay the bill. It would be unbearable if they could not spend this holiday season with their loved ones. We have to break the deadlock," he also said. In contrast, hardline CGT union on Thursday had warned that there would be no break for Christmas unless the government dropped the whole pension reform plan. Prime Minister Edouard Philippe told Le Parisien Dimanche he would meet unions next week and asked everyone to take responsibility ahead of Christmas. "I don't think the French would accept that some people could deprive them of this moment," Philippe said. Junior economy minister Agnes Pannier-Runacher said on Saturday that the proposal to encourage people to work until 64 through a system of bonuses and discounts could still be negotiated. French retailers and hoteliers have warned that their crucial Christmas season could be derailed if the transport strike drags on for much longer.

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The Maharashtra government Saturday gave administrative approval to a pension scheme for senior journalists in the state, which has been a long-pending demand of the media fraternity.

Last year, the government had made a budgetary provision of Rs 15 crore towards implementation of such a scheme in view of rising demands from various quarters.

As per a Government Order (GO) issued Saturday, the "Acharya Balshastri Jambhekar Sanman Yojana" will be implemented by the board of trustees of the 'Shankarrao Chavan Suvarna Mahotsavi Patrakar Kalyan Nidhi'.

The pension amount is not yet finalised.

Under the scheme, working journalists, photographers, editors of newspapers and other news broadcast media as well as freelancers who have attained 60 years of age and above and have completed 30 years in profession, will be eligible.

The senior journalists have to be accredited for minimum ten years, and journalism should be their only source of income.

Except the Employee Provident Fund (EPF), the applicant should not be getting any pension from any other source, the GO said.

Interestingly, one of the eligibility criteria makes it mandatory that the applicant should not be a Income Tax payee.

The pension will be given only during the beneficiary's lifetime and not to his/her kin after death, it said.

To avail of the scheme, senior journalists nearing their retirement will have to submit requisite documents to district information office. The documents will be scrutinised by a committee of Directorate of Information and Public Relations.

It will be committee's discretion to decide about granting pension to non-accredited journalists who fulfill the eligibility conditions.

The Maharashtra government Saturday gave administrative approval to a pension scheme for senior journalists in the state, which has been a long-pending demand of the media fraternity.

The Maharashtra government Saturday gave administrative approval to a pension scheme for senior journalists in the state, which has been a long-pending demand of the media fraternity. Last year, the government had made a budgetary provision of Rs 15 crore towards implementation of such a scheme in view of rising demands from various quarters. As per a Government Order (GO) issued Saturday, the "Acharya Balshastri Jambhekar Sanman Yojana" will be implemented by the board of trustees of the 'Shankarrao Chavan Suvarna Mahotsavi Patrakar Kalyan Nidhi'. The pension amount is not yet finalised. Under the scheme, working journalists, photographers, editors of newspapers and other news broadcast media as well as freelancers who have attained 60 years of age and above and have completed 30 years in profession, will be eligible. The senior journalists have to be accredited for minimum ten years, and journalism should be their only source of income. Except the Employee Provident Fund (EPF), the applicant should not be getting any pension from any other source, the GO said. Interestingly, one of the eligibility criteria makes it mandatory that the applicant should not be a Income Tax payee. The pension will be given only during the beneficiary's lifetime and not to his/her kin after death, it said. To avail of the scheme, senior journalists nearing their retirement will have to submit requisite documents to district information office. The documents will be scrutinised by a committee of Directorate of Information and Public Relations. It will be committee's discretion to decide about granting pension to non-accredited journalists who fulfill the eligibility conditions.

Maharashta approves pension scheme for senior journalists

Under the Pradhan Mantri Kisan Samman Nidhi, 6000 rupees per year for each farmer, &nbsp;in three instalments, to be transferred directly to farmers' bank accounts, for farmers with less than 2 hectares landholding, said Finance Minister Piyush Goyal on Friday.&nbsp;

Goyal said this while presenting the Interim Budget in the Parliament on Friday.&nbsp;

This initiative will benefit 12 crore small and marginal farmers, at an estimated cost of Rs. 75,000 crore, he added.

Instead of rescheduling of crop loans, the farmers severely affected by natural calamities will get 2 per cent interest subvention and additional 3 per cent interest subvention upon timely repayment

 
Mega pension scheme&nbsp;

The Finance Minister also announced a pension scheme called Pradhan Mantri Shram Yogi Mandhan which will provide assured monthly pension of 3000 rupees per month, with the contribution of 100 rupees per month, for workers in unorganised sector after 60 years of age.&nbsp;

Under the Pradhan Mantri Kisan Samman Nidhi, 6000 rupees per year for each farmer, in three instalments, to be transferred directly to farmers' bank accounts, for farmers with less than 2 hectares landholding, said Finance Minister Piyush Goyal on Friday.

Under the Pradhan Mantri Kisan Samman Nidhi, 6000 rupees per year for each farmer, in three instalments, to be transferred directly to farmers' bank accounts, for farmers with less than 2 hectares landholding, said Finance Minister Piyush Goyal on Friday. Goyal said this while presenting the Interim Budget in the Parliament on Friday. This initiative will benefit 12 crore small and marginal farmers, at an estimated cost of Rs. 75,000 crore, he added. Instead of rescheduling of crop loans, the farmers severely affected by natural calamities will get 2 per cent interest subvention and additional 3 per cent interest subvention upon timely repayment Mega pension scheme The Finance Minister also announced a pension scheme called Pradhan Mantri Shram Yogi Mandhan which will provide assured monthly pension of 3000 rupees per month, with the contribution of 100 rupees per month, for workers in unorganised sector after 60 years of age.

Budget 2019: Rs 6,000 crore to be transferred to account of small farmers, says finance minister

Budget 2019: FM Piyush Goyal propose mega pension scheme

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