Sun Jan 26 11:56:14 UTC 2025: ## Government Announces Unified Pension Scheme for Central Employees

**New Delhi, January 26, 2025** – The Ministry of Finance has notified the Unified Pension Scheme (UPS), offering a guaranteed minimum pension to central government employees. The scheme, effective April 1, 2025, provides a guaranteed pension of 50% of the average basic pay of the last 12 months preceding retirement, but only for those with a minimum of 25 years of service. Employees covered under the National Pension System (NPS) will have the option to opt for the UPS.

The UPS will replace the existing NPS for eligible employees. Those who choose the UPS will have their NPS funds transferred to a personal UPS account. Government contribution to the UPS will increase to 18.5% from the current 14%, while employees will contribute 10% of their basic salary and dearness allowance. For those with less than 25 years of service but more than 10 years, a minimum monthly pension of ₹10,000 is guaranteed.

Employees who leave service voluntarily or are dismissed will not be eligible for the assured pension. In the event of death after retirement, the surviving spouse will receive 60% of the deceased’s pension. Dearness relief (cost of living adjustment) will be applicable to both the assured pension and family pension.

Approximately 2.3 million central government employees will be given the choice between continuing with the NPS or opting for the UPS. The scheme aims to provide greater pension security for government employees. Further details regarding tax implications and other benefits are awaited.

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