Unified Pension Scheme: Who is eligible and what happens to NPS subscribers?
PM Modi-led NDA government at the Centre approved the new Unified Pension Scheme on Saturday. It is set to benefit around 23 lakh government employees, according to Ashwini Vaishnaw.
Prime Minister Narendra Modi-led NDA government on Saturday, August 24, approved the Unified Pension Scheme (UPS), which is expected to benefit around 23 lakh government employees. While the new scheme will come into force from April 1, 2025, the employees covered under National Pension Scheme (NPS) will have choice to continue with it or opt for the new scheme.
According to Union Minister Ashwini Vaishnaw, the scheme will positively impact 23 lakh people who are government employees.
Taking to social media platform X, PM Modi stated, “The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future.”
Who is eligible for Unified Pension Scheme ?
Applicable from April 1 next year, all Central government employees who are retired or retiring on or before 31 March 2025, with arrears, will be eligible under UPS.
In another post on X, PM Modi tweeted, "Met a delegation of staff side from the Joint Consultative Machinery for Central Government employees. They expressed joy on the Cabinet's decision regarding the Unified Pension Scheme."
A committee led by finance secretary TV Somanathan was set up by the Finance Ministry last year to review the current pension scheme for government employees. All government employees who joined the service after April 1, 2004, come under the purview of the NPS.
Meanwhile, NPS subscribers can chose between the two schemes. It is important to note that UPS offers assured pension to employees who have served for a minimum of 25 years and proportionate or Rs. 10,000 per month minimum pension to employees who have served for a minimum of 10 years.
Additionally, the new scheme offers Assured Family Pension in case of the death of employee from the next financial year. The Assured Family Pension would be calculated at the rate of 60 per cent of pension of the employee immediately before her or his demise.
According to news agency PTI, the BJP ruled states praised the decision while others demanded revival of the Old Pension Scheme (OPS).
There will be inflation indexation on assured pension, on assured family pension and assured minimum pension under UPS, ANI reported citing an official release. The statement reads, “Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees.”
In addition to gratuity, there will be lump sum payment at superannuation, according to the official notice.
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First Published:25 Aug 2024, 12:57 PM IST
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