New Delhi, Jan 25: On the eve of Republic Day celebrations, the Narendra Modi Govt issued the notification for the implementation of the Unified Pension Scheme (UPS) for Central Government employees.
The new scheme combines aspects of both the Old Pension Scheme (OPS) and the National Pension System (NPS), which aims to provide employees with a guaranteed pension, financial stability and post-retirement dignity.
The UPS will come into effect from April 1, 2025. The UPS will apply to only such Central Government employees who are already enrolled in the NPS. The scheme will be available only to those who meet certain criteria, as outlined in the notification issued on January 24, 2025.
Employees must have completed a minimum of 10 years of qualifying service to be eligible for the scheme. Employees retiring under government provisions, but without penalty, will also qualify for the assured payout starting from the date of their retirement.
Employees opting for VRS after 25 or more years of service will receive a payout starting from the date they would have reached superannuation, had they continued in service. The UPS will not apply to employees who are dismissed, removed, or resigned from service. Employees with 25 or more years of qualifying service will receive 50 percent of their average basic pay from the last 12 months of service.
Employees with less than 25 years of service will receive a proportional payout based on their qualifying service. Employees with 10 or more years of service are assured a minimum payout of Rs 10,000 per month.
Employees opting for VRS after 25 years of service, the payout will begin from the date they would have reached the age of superannuation.
On pensioner’s death after superannuation, a family payout will be 60 percent of the last admissible payout and will be provided to the legally wedded spouse of the deceased.
The payout is made according to the date of superannuation, VRS, or retirement under FR 56(j). Dearness Relief (DR) will be extended to both the assured and family payouts under the UPS.
DR will be provided once the payout commences. A lump sum payment of 10 percent of the monthly emoluments (basic pay + dearness allowance) will be provided for each six months of completed service at the time of superannuation.
This lump sum will not affect the assured monthly payout. Employees will get an option to choose between the NPS and the new UPS.
It also includes provisions for government employees already retired but opting for this new system. For them, the pension authority will implement an appropriate top-up payment system to ensure a smooth transition into the new framework.
  for Central Government employees. The new scheme combines aspects of both the Old Pension Scheme (OPS) and the National Pension System (NPS), which aims to provide employees with a guaranteed pension, financial stability and post-retirement dignity. The UPS will come into effect from April 1, 2025. The UPS will apply to only such Central Government employees who are already enrolled in the NPS. The scheme will be available only to those who meet certain criteria, as outlined in the notification issued on January 24, 2025. Employees must have completed a minimum of 10 years of qualifying service to be eligible for the scheme. Employees retiring under government provisions, but without penalty, will also qualify for the assured payout starting from the date of their retirement. Employees opting for VRS after 25 or more years of service will receive a payout starting from the date they would have reached superannuation, had they continued in service. The UPS will not apply to employees who are dismissed, removed, or resigned from service. Employees with 25 or more years of qualifying service will receive 50 percent of their average basic pay from the last 12 months of service. Employees with less than 25 years of service will receive a proportional payout based on their qualifying service. Employees with 10 or more years of service are assured a minimum payout of Rs 10,000 per month. Employees opting for VRS after 25 years of service, the payout will begin from the date they would have reached the age of superannuation. On pensioner’s death after superannuation, a family payout will be 60 percent of the last admissible payout and will be provided to the legally wedded spouse of the deceased. The payout is made according to the date of superannuation, VRS, or retirement under FR 56(j). Dearness Relief (DR) will be extended to both the assured and family payouts under the UPS. DR will be provided once the payout commences. A lump sum payment of 10 percent of the monthly emoluments (basic pay + dearness allowance) will be provided for each six months of completed service at the time of superannuation. This lump sum will not affect the assured monthly payout. Employees will get an option to choose between the NPS and the new UPS. It also includes provisions for government employees already retired but opting for this new system. For them, the pension authority will implement an appropriate top-up payment system to ensure a smooth transition into the new framework. 215840_OneDrive.jpg)  
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