Ministry of Finance notifies the operationalization of the Unified Pension Scheme (UPS) | Current Affairs | Vision IAS
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Ministry of Finance notifies the operationalization of the Unified Pension Scheme (UPS)

Posted 27 Jan 2025

1 min read

UPS shall be applicable to Central Government employees who are covered under the National Pension System (NPS) and who choose this option under NPS.

  • It will be operational from April 1, 2025 and Pension Fund Regulatory and Development Authority (PFRDA) may issue regulations for its operationalization.

Salient features of UPS 

  • Assured pension: 50% of average basic pay drawn over last 12 months prior to superannuation for a minimum qualifying service of 25 years. 
    • Pension will be proportionate for lesser service period upto a minimum 10 years of service
  • Assured family pension: 60% of the employee's pension immediately before their demise.
  • Assured minimum pension: ₹10,000/month on superannuation after minimum 10 years of service. 
  • Inflation indexation:  Applicable to assured pension, family pension, and minimum pension.
    • Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees.
  • Lump sum payment at superannuation in addition to gratuity equivalent to 1/10th of monthly emoluments (pay + DA) for every completed six months of service
A comparative table differentiating among UPS, NPS and OPS
  • Tags :
  • National Pension System
  • Social Security
  • Unified Pension Scheme
  • Old Pension Scheme
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