Unified Pension Scheme 2025 : The Government of India has announced for government employees a new pension scheme called Unified Pension Scheme (UPS). The scheme will come into effect from April 1, 2025, aiming at fixed and secure pension employees. The special thing about this scheme is that the employees will be able to shift out of their present National Pension System (NPS) and get guaranteed pensions.
This scheme is particularly easy for those employees who would want to have a steady income post-retirement. Under this new scheme, the employee will get 50% of his last 12 months average basic salary as pension. However, for this, the employee will have to render a minimum of 25 years of service.
Some Significant Benefits Provided By Unified Pension Scheme
People getting covered under the Unified Pension Scheme will receive a guaranteed pension which will be 50% of their average salary of the last 12 months. In case of death of the pensioner, his family shall be entitled to receive 60% of his pension. Employees of this scheme completing 10 or more years will be allotted a minimum pension of not less than ₹ 10,000. Again the amount of pension will keep increasing with rise in inflation over a period of time to maintain the purchasing power of beneficiaries. A lump sum amount at retirement shall be paid to the employees so that they can fulfill their future plans smoothly.
Eligibility Criteria For UPS
To qualify under the Unified Pension Scheme (UPS), the following parameters would apply to an applicant employee:
- The employee must complete at least 10 years of eligible service to have the pension benefit.
- Moreover, the employee must be already registered under NPS. He will have the option to switch himself from NPS to Unified Pension Scheme whereby he shall enjoy guaranteed pension and other financial benefits.
Application Process For UPS
- The application for the Unified Pension Scheme (UPS) must be initiated by the applicant by availing of this pension scheme program and issuing the request to the concerned department.
- According to this scheme, the applicant will be required to contribute a mandatory 10% of his basic salary and dearness allowance, as well as.
- The other contribution to the fund will be from the end of government which would be 18.5% of the applicant’s salary and DA.
Financial Impacts On The Government
As much as Unified Pension Scheme is going to add to the financial burden of the government, it is going to enhance the pension security for the employees. The initial year of introduction has been estimated to increase government expenditure by around ₹6,250 crore due to this scheme. It can also be adopted by the state governments. In that case, about 90 lakh employees will be eligible to avail the benefits under this scheme.
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