Unified Pension Scheme for UPSC: Key Benefits and Eligibility and PDF Download

Unified Pension Scheme for UPSC: The Union Cabinet, headed by Prime Minister Shri Narendra Modi, has approved the Unified Pension Scheme (UPS) on August 24, 2024. This new scheme is designed to provide a more comprehensive and assured pension system for employees. The scheme will be effective from April 1, 2025, and will benefit 23 lakh central government employees.

The aim of India's Unified Pension Scheme is to simplify and integrate the several pension plans that are now offered throughout the country. By combining several current pension schemes under one roof, the program seeks to simplify the pension system and guarantee that all employees of the central government and state government have a better retirement plan. 

 The employees will have the option of the Employees’ Provident Fund (EPF), Employees’ Pension Scheme (EPS), National Pension System (NPS), Old Pension Scheme (OPS), and others, or the newly launched UPS. The state government also has the option to opt for this structure. 

The employee contribution on the pension side will remain the same as 10%, whereas the central government contribution will increase to 18.5% from 14%. 

Unified Pension Scheme (UPS)

The Unified Pension Scheme is a new integrated scheme that is launched with the aim of providing an assured pension of 50% of the average basic pay drawn over the last 12 months, an assured family pension. The schemes ensure a minimum pension of Rs 10,000 per month on superannuation (the retirement of an employee, especially with a pension) after a minimum of 10 years of service.

Unified Pension Scheme: Download PDF

The Unified Pension Scheme pdf includes the key benefits for pensioners of central government, such as assured pension, assured family pension and assured minimum pension. Check the direct download link for unified pension scheme press release.

Benefits of the Unified Pension Scheme

The Unified Pension Scheme ensures many benefits, such as assured pensions and assured family pensions. There will be ten pillars for this scheme. Check the list of benefits below.

Assured pension: The employees will be eligible to get the amount, which will be 50% of average basic pay of 12 months before retirement. The employees who have completed their 25 years of service will be eligible to get full pension, whereas the employees who have completed 10 years of service and have not completed 25 years of service will be eligible to get pension on a pro rata basis. 

Assured family pension: The second of UPS is assured family pension. The spouse of the demise pensioner will be eligible for 60% of the amount, which is immediately before his/her demise.  

Assured minimum pension: The third pillar of UPS is an assured minimum pension of Rs 10,000. The employees who have given at least 10 years of service in central government will be eligible to get a minimum pension of Rs 10,000.  

Inflation Indexation: The pensioners will get the Dearness Relief (DR) on assured pension, assured family pension and assured minimum pension. The DR will be based on the All India Consumer Price Index for Industrial Workers.

Note: The DR will be calculated on the same pattern as DNS is calculated for the central government employees.

Lump sum payment at superannuation in addition to gratuity

Employers will get the lump sum amount in addition to their gratuity. The amount will be 1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service. This payment will not reduce the quantum of the assured pension.

Who are eligible to get Unified Pension Scheme?

The employees who have retired from 2004 onwards under NPS or are retiring till April 1, 2025 will also be eligible to opt for this. The arrears will be given to such pensioners after adjustment. The more eligibility criteria are listed below. Also, the employee will be eligible to get the full amount after completing 25 years of service, but those who completed at least 10 years of service will get the amount on a pro rata basis.  

Important Schemes for UPSC IAS Prelims Exam,

What is the Minimum Amount Under UPS?

The assured minimum amount under UPS is Rs 10,000 per month on retirement after a minimum of 10 years of service. 

 Also Check,

NPS Vs OPS

Under National Pension Scheme (NPS) government contributes employees contributes 10% and the contribution of government is 14% and the pension amount is this not fixed it varies as per marked performance. The family pension under this scheme depends on the accumulated corpus and annuity plans at the time of retirement.

Under Old Pension Scheme (OPS) government retired employees receive 50% of their last basic salary as their monthly pension it also includes dearness allowance (DA) and on the death of pensioner their spouse will continue receiving the pension.