Centre Announces Unified Pension Scheme with Assured Minimum Pension for Employees

New Delhi: The Centre has unveiled the Unified Pension Scheme (UPS), which promises an assured pension, family pension and a guaranteed minimum pension for government employees. Approved by the Union Cabinet on Saturday, the scheme is set to be implemented from April 1, 2025.

Under the UPS, employees with at least 25 years of service will receive a pension amounting to 50% of their average basic pay from the last 12 months. Those with fewer years of service will receive a proportionate pension. The scheme also guarantees a family pension of 60% of the employee’s last drawn pension and an assured minimum pension of ₹10,000 per month for those with a minimum of 10 years of service.

Railways Minister Ashwini Vaishnaw highlighted that around 23 lakh central government employees who are currently under the National Pension System (NPS) will benefit from the UPS. He mentioned that employees will have the option to choose between the NPS and UPS.

Cabinet Secretary-designate TV Somanathan confirmed that the scheme’s benefits, including a lump-sum payment upon superannuation along with gratuity, will apply to those retiring by March 31, 2025.

The scheme emerged following the finance ministry’s review of the existing pension framework, amidst ongoing demands in non-BJP states for a return to the Old Pension Scheme (OPS).