Prime Minister Narendra Modi on Saturday said that the Unified Pension Scheme (UPS) aligns with the government’s commitment to the well-being of government employees and ensures a secure future for them.
We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future.…— Narendra Modi (@narendramodi) August 24, 2024
“We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future,” PM Modi said in a social media post, shortly after the Union Cabinet announced that under the Unified Pension Scheme (UPS) government employees will now be eligible to get 50 percent of the average basic pay drawn over the last 12 months before the superannuation as pension.
The latest pension scheme for government employees, the UPS, includes a provision for a fixed assured pension, unlike the New Pension Scheme (NPS), which does not guarantee a fixed pension amount.
Central government employees will have the option to choose between staying in the National Pension Scheme (NPS) or switching to the Unified Pension Scheme (UPS). Similarly, state governments can decide whether to adopt the new UPS module.
The Union Cabinet on Saturday also approved an assured 50 percent of salary as pension for 23 lakh government employees who joined service under the National Pension System (NPS).
The National Pension System is applicable for government employees joining the service after April 1, 2004. It was based on the premise of contribution rather than defined benefit applicable for employees prior to the NPS.
NPS subscribers can now opt for the Unified Pension Scheme (UPS), which offers assured pension applicable from the beginning of the next financial year.
Cabinet Secretary-designate TV Somanathan said the new scheme is applicable from April 1, 2025.
The benefits of the Unified Pension Scheme are applicable for those retired and retiring till March 31, 2025, with arrears, he added.
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