Sun Jan 26 23:36:28 UTC 2025: ## India Launches Unified Pension Scheme for Government Employees

**New Delhi** – The Indian government has announced the launch of a new Unified Pension Scheme (UPS) for central government employees, offering guaranteed retirement benefits. The scheme will become operational on April 1, 2025, providing an alternative to the existing National Pension System (NPS).

The UPS, approved by the Union Cabinet in August 2024, addresses long-standing concerns from employees regarding the market-linked nature of the NPS. Under the new system, employees completing 25 years of service will receive a monthly pension equivalent to 50% of their average basic pay during the final 12 months of employment. Those serving less than 25 years but more than 10 years will receive a proportionately reduced pension. A minimum monthly pension of ₹10,000 is guaranteed for employees with at least 10 years of service.

The scheme also includes family pension benefits, providing 60% of the deceased employee’s last drawn salary to surviving family members. Furthermore, the UPS will be indexed to the Consumer Price Index for Industrial Workers (CPI-IW) to adjust for inflation.

The government established a panel to review the existing NPS system following widespread employee grievances. While the new scheme offers assured benefits, it avoids a complete return to the old, fiscally unsustainable pension system. Current NPS participants will be able to choose to opt into the UPS. Employees who retired before April 2004 will continue under the existing old pension scheme. The Pension Fund Regulatory and Development Authority (PFRDA) will issue further regulations for the implementation of the UPS. The move is seen as a significant step in addressing the concerns of nearly 2.3 million central government employees.

Read More