New Delhi: Prime Minister Narendra Modi said Saturday the Unified Pension Scheme (UPS) ensures dignity and financial security for government employees, aligning with the government's commitment to their well-being and secure future.
His remarks came after the Union Cabinet approved an assured 50 per cent 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.
"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," Modi said in a post on X.
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
Announcing Cabinet decisions, Union Information and Broadcasting Minister Ashwini Vaishnaw said that under the Unified Pension Scheme (UPS), government employees will now be eligible to get 50 per cent of the average basic pay drawn over the last 12 months before the superannuation as pension.
For this full pension or 50 per cent of pay as the pension, he said, the eligibility service length will be 25 years. However, he said, it would be proportionate for a lesser service period up to a minimum of 10 years of service. NPS subscribers can now opt for the Unified Pension Scheme (UPS), which offers assured pension applicable from the beginning of the next financial year.
Salient Features Of UPS
Assured pension: 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period upto a minimum of 10 years of service.
Assured family pension: @60% of pension of the employee immediately before her/his demise.
Assured minimum pension: @10,000 per month on superannuation after a minimum of 10 years of service.
Inflation indexation: 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 the case of service employees.
Lump sum payment at superannuation in addition to gratuity: 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 assured pension.
