Mon Jan 27 09:59:44 UTC 2025: ## New Unified Pension Scheme Offers Assured Pension for Central Government Employees
**New Delhi, January 25, 2025** – The Indian government announced a new Unified Pension Scheme (UPS) offering central government employees an alternative to the existing National Pension System (NPS). The scheme, approved by the Union Cabinet in August 2024, will be implemented starting April 1, 2025, and is designed to provide assured pension benefits to nearly 23 lakh employees.
The UPS guarantees a monthly pension equal to 50% of the average basic pay drawn during the 12 months preceding retirement, provided the employee has completed 25 years of service. The pension will be adjusted periodically to account for inflation through dearness relief increases. Further benefits include a family pension of 60% of the employee’s pension upon their death, and a lump-sum superannuation payout and gratuity at retirement.
The scheme is open to both current and future central government employees covered under NPS who choose to opt in. Those who do not opt for the UPS will remain under the existing NPS. Guaranteed benefits are also extended to employees retiring after 10 years of service, those retired under FR 56, and those taking voluntary retirement after 25 years of continuous service.
The government’s announcement offers central government employees a more predictable and secure retirement income, shifting from the market-linked NPS to a defined benefit plan under the UPS. The choice to opt into the UPS will be left to individual employees.
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