Sun Jan 26 11:05:23 UTC 2025: ## Government Unveils Unified Pension Scheme for Central Employees
**New Delhi, [Date]** – The Indian government announced a new Unified Pension Scheme (UPS) for central government employees, set to launch April 1, 2025. This enhanced option under the National Pension System (NPS) aims to provide greater pension security.
The UPS guarantees a minimum monthly pension of 50% of the employee’s average monthly basic pay prior to retirement for those with at least 25 years of service. Employees with 10-24 years of service will receive a minimum monthly pension of ₹10,000. These pensions will be adjusted for inflation. Upon death, the family will receive 60% of the pension. A lump-sum payment equivalent to 1/10th of the monthly salary (including allowances) for every six months of service will also be provided upon retirement, in addition to gratuity.
The scheme is non-reversible; once an employee opts for the UPS, they cannot return to the NPS. State governments also have the option to adopt the UPS for their employees. Currently, over 92 lakh central and state government employees contribute to the NPS, managing a corpus of ₹9 lakh crore.
The UPS will operate with two funds: an individual corpus funded by employee and matching government contributions (10% each of basic pay + Dearness Allowance), and a pool corpus receiving an additional 8.5% government contribution. Employees can choose their investment options for the individual corpus, or a default option will be applied.
The government positions the UPS as a significant improvement over the NPS, offering guaranteed pensions and inflation protection. The scheme’s introduction is expected to impact millions of government employees and reshape the landscape of retirement benefits in India.
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