– Union Cabinet approved Unified Pension Scheme (UPS) for government employees
– UPS effective from April 1, 2025, promises fixed pension unlike NPS
– UPS features include assured pension, minimum pension, family pension, inflation indexation, lump sum payment
– NPS replaced OPS in 2004 due to unfunded nature and rising pension liabilities
– UPS deemed more fiscally prudent and beneficial for employees compared to NPS
– Employees can opt for UPS once, not reversible
– UPS applicable for central government employees, states can adopt it
– UPS will cost approximately Rs 6,250 crore to the exchequer
– Scheme aims to combine best elements of OPS and NPS
– Significant political signal ahead of upcoming Assembly elections in certain states.