– The Narendra Modi-led government has approved a new pension scheme, the Unified Pension Scheme, which will come into effect in FY2025-26
– The scheme amalgamates the advantages of the Old Pension Scheme and the features of the New Pension Scheme
– Central government employees will receive 50% of their last drawn salary as pension
– Key features include fixed assured pension, family pension, minimum pension, inflation indexation, and gratuity
– The scheme ensures financial security and support for employees even after retirement
– The scheme differs from the Guaranteed Pension Scheme proposed by the Andhra Pradesh government
– The National Pension Scheme (NPS) offers pension alongside investment growth and tax benefits
– Under the Official Pay Structure (OPS), employees receive 50% of their last drawn basic pay as pension along with Dearness Allowance
– The Unified Pension Scheme combines elements from OPS and NPS, providing security and stability to members post-retirement.