Mon Jan 27 13:43:20 UTC 2025: ## New Pension Scheme Offers Assured Benefits for Government Employees

**New Delhi, January 25, 2025** – The Indian government announced a new Unified Pension Scheme (UPS) offering assured benefits to government employees, effective April 1, 2025. This follows five months after the scheme’s initial announcement. The UPS will be an optional alternative for government workers currently enrolled in the National Pension System (NPS).

The NPS, implemented in 2004, did not guarantee a pension, unlike the previous system which provided 50% of the last drawn salary. The UPS restores this guaranteed pension, including a 50% pension based on final salary with inflation adjustments, a family pension of 60% of the worker’s pension, and a lump-sum superannuation payment. A minimum pension of ₹10,000 per month is promised for those with at least 10 years of service.

Employees choosing the UPS will contribute to two funds: an individual account and a central pool. The government will match employee contributions by 10% of basic pay plus dearness allowance and additionally contribute an estimated 8.5% to the central pool to ensure the guaranteed payouts. Those opting for the UPS will not be eligible for other pension benefits or policy changes.

The Pension Fund Regulatory and Development Authority (PFRDA) will develop a mechanism to allow retired NPS members to access the UPS benefits retroactively. The UPS was recommended by a high-level panel to address concerns about the previous NPS.

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