Key features of the Unified Pension Scheme

.   **** Unified Pension Scheme ****

Key features of the Unified Pension Scheme

1. #Assured_Pension :- 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.Proportionate for lesser service period upto a minimum of 10 years of service.

2. #Assured_Family_Pension

60 per cent of pension of the employee immediately before her or his demise.

3. #Assured_Minimum_Pension

10,000 per month on superannuation after a minimum of 10 years of service.

4. #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 case of serving employees. 

5. #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.Other salient features of UPS

Provisions of UPS will apply to past retirees of NPS (who have already superannuated).

6. #Arrears for the past period will be paid with interest at PPF rates.

7. #Choice :- UPS will be available as an option to the employees. Existing as well as future employees will have the option of joining NPS or UPS. Choice, once exercised, will be final.

8. #Contribution :- Employee contribution will not increase. The government will provide additional contributions for implementing UPS.

Government contribution increased from "14 per cent to 18.5 per cent"

Implementation of UPS.

9. #Effective :- UPS to be given effect from April 1, 2025. Support mechanism and necessary legal, regulatory and accounting changes will be readied.

10. #Benifiseries :- UPS is being implemented by the Central Government Benefiting 23 lakh Central Government employees.

The same architecture has been designed for adoption by State governments.

If also adopted by State governments it can benefit over 90 lakh government employees who are presently on NPS.