April 1: Govt Launches Unified Pension Scheme

Unified Pension Scheme to benefit 23 lakh central employees from April 1.

New Delhi: The central government is introducing a new scheme for its employees called the Unified Pension Scheme (UPS). Under this scheme, central employees who have served for at least 25 years will be eligible to receive 50 percent of their average basic salary of the last 12 months as a pension before retirement, starting from April 1.

With this scheme, the government aims to provide financial security to at least 23 lakh central employees after retirement. The UPS is being introduced, particularly considering those who prefer a stable and predictable income over market-linked pensions.

23 Lakh Central Government Employees to Benefit

Under the new scheme, employees who have served for more than 10 years but less than 25 years will receive a minimum monthly pension of ₹10,000.

In the event of the pensioner’s death, their family will receive 60 percent of the last drawn pension as a family pension. Additionally, central government employees currently under the National Pension System (NPS) will have the option to switch to the UPS.