The Unified Pension Scheme (UPS), introduced by the Government of India in 2024 as an optional pension scheme along with the National Pension System (NPS) for the government employees, it aims to provide a comprehensive and centralised pension system for Central government employees. The scheme is designed to consolidate various existing pension schemes, offering a more equitable and efficient approach to retirement benefits.[1][2][3]
Aspect
Details
Name
Unified Pension Scheme (UPS)
Beneficiaries
Central Government employees (Later will be implemented on state level if state approves)
Employee Contribution
10% of basic salary + dearness allowance
Benefits
A pension of 50% of the average basic pay over the last 12 months before retirement for employees having at least 25 years of service
Rs. 10,000 per month upon superannuation after a minimum of 10 years of service
Eligibility
Central government employees who joined service after January 1, 2004
Contribution Rate
Varies; usually a percentage of the employee’s salary, with contributions from both the employee and employer.
Launched by
Central government and union cabinet
Pension Calculation
Often calculated based on a formula: Final Salary × Years of Service × Pension Rate.
Vesting Period
The minimum period an employee must work before becoming eligible for benefits; varies by scheme.
There have been long pending demands from the Central Government employees to introduce a more comprehensive pension system. Various opposition parties and leaders have raised the issue several times in his election speeches for the reintroduction of the Old Pension Scheme (OPS).[4][5][6]
