GUWAHATI: The central government will implement the Unified Pension Scheme (UPS) from April 1 to provide a stable pension to 23 lakh employees. The scheme has been implemented to cater to employees who prefer a predictable income over a market-linked pension.
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Under the UPS, central government employees with at least 25 years of service will now be eligible for a fixed pension amounting to 50% of their average basic salary from the last 12 months before retirement.
As for employees who have completed more than 10 years but less than 25 years of service, they will receive a minimum pension of ₹10,000 per month.
Additionally, in the event of a pensioner’s death, their family will receive 60% of the last pension drawn as a family pension.
Employees currently under the National Pension System (NPS) have been provided the option to switch to the UPS. The latter has a hybrid model, incorporating features from both the Old Pension Scheme (OPS) and the NPS. Also, unlike the NPS, which offers market-based returns without a fixed payout, the UPS ensures a guaranteed pension amount.
Relatedly, the OPS, which was replaced by the NPS in 2004, provided government-backed pensions with periodic dearness allowance revisions.