New Delhi (24.08.2024): In yet another decision seems to have been taken under pressure from allies and elections in mind as the Government blinks on pension benefits for the Central government employees which has proposed 50 per cent of the last drawn basic pay assured under Unified Pension Scheme that is akin to old pension scheme.

The government proposed assured pension that is 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. It would be proportionate for lesser service period up to a minimum of 10 years of service. For the Assured Family Pension: 60 per cent of pension of the employee would be immediately after her/his demise.

UPS to be given from 1.4.2025 after support mechanism and necessary legal, regulatory and accounting changes are ready. The UPS being implemented by the Central Government would be benefiting 23 lakh Central Government employees.

The same architecture has been designed for adoption by the State Governments. If also adopted by State Governments, can benefit over 90 lakh Government employees who are presently on NPS.

Assured Minimum Pension will be Rs 10,000 per month on superannuation after minimum 10 years of service. Inflation Indexation is taken care of on assured pension, on assured family pension and assured minimum pension.

Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of serving employees  

• Lump-Sum payment at superannuation in addition to gratuity
• 1/10th of monthly emolument (pay + DA) as on the date of superannuation for every completed six months of service
• This payment will not reduce the quantum of assured pension
• Provisions of UPS will apply to past retirees of NPS ( who have already superannuated).
• Arrears for past period will be paid with interest @PPF rates
• UPS will be available as an option to the employees. Existing as well as future employees will have an option of joining NPS or UPS. Choice, once exercised, will be final
• Employee contribution will not increase. Government will provide additional contribution for implementing UPS
• The Government contribution increased from 14 to 18.5%