Unified Pension Scheme for Retired Government Employees
The Unified Pension Scheme (UPS) was introduced by the central government to provide additional benefits to retired National Pension System (NPS) subscribers. This scheme applies to those who retired on or before March 31, 2025, and have a minimum of 10 years of qualifying service. The UPS aims to enhance pension security for government employees by offering a fixed pension amount.
Eligibility Criteria
To qualify for the UPS, retirees must have served at least 10 years in a central government position. This includes those who have retired through superannuation, voluntary retirement, or retirement under specific regulations. Spouses of deceased subscribers also qualify for benefits.
Benefits Under the UPS
The UPS offers several financial benefits. Retirees receive a one-time lump sum payment. This payment is calculated as one-tenth of the last drawn basic pay plus dearness allowance for every six months of qualifying service. Additionally, retirees receive a monthly top-up pension if their NPS annuity is lower than the guaranteed UPS pension.
Monthly Pension Calculation
The monthly pension under UPS is guaranteed at 50% of the average basic pay drawn over the last 12 months before retirement. This is applicable for those with 25 or more years of service. For those with less than 25 years, the pension is based on the qualifying service period.
Claim Process
Eligible retirees must submit their claims by June 30, 2025. Claims can be made both online and offline. Offline applicants need to fill out specific forms and submit them to the Drawing and Disbursing Officer of their last office. Online applications can be completed through the official government portal.
Interest on Arrears
Retirees can also claim arrears on their pensions. The interest on these arrears is calculated at the Public Provident Fund (PPF) rates. This provision ensures that retirees receive their due amounts promptly and fairly.
Implementation Timeline
The UPS officially came into effect on April 1, 2025. The government aims to provide retirees with a predictable and stable pension, contrasting the variable nature of NPS payouts. This initiative is part of a broader effort to enhance the financial security of government employees post-retirement.
Impact on Government Employees
The introduction of the UPS is for over 23 lakh government employees. It offers them a choice between the existing NPS and the new UPS. This choice allows employees to select a pension scheme that best suits their financial needs and retirement plans.
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C Unnikrishnan
May 31, 2025 at 5:37 pmWhat about EPS pensioners.Any such scheme is going to be introduced for them in the near future?
Santosh Kumar Mohanty
June 1, 2025 at 8:41 amWhat about if some one wants return 60% withdrawn amount to optimise pension amount? possible, how? I am talking about already retired.
Dipak Das
June 8, 2025 at 7:47 pmWhat about the money contributed by the employee in the NPS every month? If an employee switch on to UPS from NPS,will he get back the money which he deposited in NPS or not?