CMS College (New Delhi). The Central Government has announced the implementation of the Unified Pension Scheme (UPS) from April 1, 2025. This scheme provides a new and secure option to the central employees coming under the National Pension System (NPS). Under UPS, employees will be ensured a stable income after retirement, which will ensure their financial security.
According to UPS, central government employees will get 50% of the average basic salary of 12 months before retirement as pension. This facility will be available to those employees who have completed at least 25 years of service. This step will provide a guaranteed income even after retirement and will improve the standard of living of the employees.
If an employee does not complete 25 years of service but has worked for more than 10 years, he will be given proportional pension according to the service period. This will also provide financial security to employees with less service period.
The government has stated the objective of implementing UPS to reduce the financial concerns of employees after retirement. This policy, different from the old pension system (OPS), focuses on providing stable and regular income in the future. UPS is a big step towards providing better financial security and relief to central employees.
UPS will be available to those employees who come under NPS and opt for it. The Pension Fund Regulatory and Development Authority (PFRDA) will issue guidelines to oversee and implement the scheme. The notification related to UPS was issued by the Ministry of Finance on 24 January 2025, in which detailed details of the scheme have been shared.
UPS has been introduced by the Central Government as a better and reliable option than the old pension system (OPS) and National Pension System (NPS). Under UPS, employees will get the assurance of regular pension, which will reduce their post-retirement challenges.
This scheme will come into effect from 1 April 2025. To implement the scheme, the central government has expedited all the necessary processes and soon the rules and guidelines for UPS will be prepared.
When will UPS be implemented?
This integrated pension scheme will be effective from April 1, 2025. Earlier, the central government has started the work of finalizing all the necessary rules and procedures for the operation of this scheme. Pension Fund Regulatory and Development Authority (PFRDA) can issue rules for the operation of this scheme.
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