Unified Pension Scheme

 

 

 

The Central Government has announced Unified Pension Scheme (UPS) for its employees with effect from 1.4.2025. The UPS has immense benefits for the employees. There’s an assured pension amount for the employees unlike the New Pension Scheme (NPS).There’s no need for employees to contribute towards pension. The pension amount under UPS will increase twice every year when the Dearness Allowance (DA) is sanctioned to the employees/pensioners. The pension amount will also increase when the pay commission revises the pay of the employees/pensioners once in ten years. A minimum of Rs 10000 is guaranteed under the UPS for employees who have put in a minimum of ten years in government service. Family pension (60% of the pension) is also guaranteed under the UPS. A lumpsum superannuation payout in addition to gratuity benefits at the time of retirement has been sanctioned under the UPS. This scheme is more like the Old Pension Scheme (OPS). Some states like Rajasthan, Punjab, Jharkhand and Chhattisgarh have reintroduced the OPS for its employees replacing the NPS. It’s time the states like Tamil Nadu also adopted the assured pension scheme to its employees as demanded by the employees’ unions.