The Government of India has approved the Unified Pension Scheme on 24 August 2024 in the Cabinet meeting. Employees still have many questions regarding this new pension scheme. Here are some essential guidelines. So read and know,,,

What is the Unified Pension Scheme (UPS)?

5 big things about UPS

Pension: An employee will get an assured pension of 50 percent of the basic salary for the 12 months preceding retirement. If a person has worked for 25 years then he will get this pension. Less than 25 years and more than 10 years will be reduced.
Assured Family Pension: 60% of the pension (if retired instead of death) of the employee at the time of his death will be given as pension to the family.
Assured Minimum Pension: In case of less than ten years of service, the Assured Minimum Pension per month is Rs. 10,000 will be. With inflation it would be around Rs 15,000 today.
DR (Dearness Relief) money will be available on these three pensions according to inflation. Which will be based on All India Consumer Price Index for Industrial Workers (AICPI-W).
A lump sum of 10% of salary will be paid for every 6 months of service. If a person completes 30 years of service he will get six months pay (including allowances). This will be in addition to gratuity.

Know what is (UPS) Unified Pension Scheme?

Key Points About UPS

25 years of service will be required for Unified Pension Scheme
A pensioner who has worked for 25 years will get 50% of the monthly basic pay before retirement
Only those who have worked for at least 10 years will be entitled to this pension
A pensioner who retires after 10 years of service will get a pension of Rs. 10,000 will be received
If the employee dies, the family will get 60% of the pension amount
Dearness allowance was also included in UPS
One-tenth of monthly salary (salary + DA) will be added on retirement
The Unified Pension Scheme will be implemented from 1 April 2025
The amount including gratuity will be available on retirement of the employee

For UPS Pension Matter

Here are 50 important points about Unified Pension Scheme (UPS) in India

General overview

1. Unified Pension Scheme (UPS): A comprehensive pension system for government employees.

2. Implementation Date: Will come into force from April 1, 2025.

3. Objective : To provide financial security to retired government employees and their families.

Guaranteed Pension

4. Eligibility: Minimum qualifying service of 25 years.

5. Amount of Pension: 50% of the average basic pay drawn in the last 12 months.

6. Proportionate Pension: For service between 10 to 25 years.

7. Basis of calculation: Average basic pay of last 12 months.

Assured Family Pension

8. Eligibility: Family members of deceased Government servants.

9. Amount of Pension: 60% of the employee's pension.

10. Immediate Effect: Effective immediately after the death of the employee.

Assured Minimum Pension

11. Eligibility: Minimum 10 years of service.

12. Pension Amount: ₹10,000 per month.

13. Minimum Service Requirement: Minimum 10 years.

Additional benefits

14. Inflation Adjustment: Periodic adjustments to keep pace with inflation.

15. Medical Benefits: Coverage under Central Government Health Scheme (CGHS).

16. Family coverage: Medical benefits extend to family members.

Administrative details

17. Central Government Employees: Applies primarily to Central Government employees.

18. State Government Employees: May extend to State employees as per State-specific instructions.

19. DISTRIBUTION OF PENSION: Administered by the Pension Disbursing Authority

Financial security

20. Post Retirement Security: Ensures financial stability after retirement.

21. Family Support: Provides financial support to the family of deceased employees.

22. Minimum Pension Guarantee: Ensures minimum pension amount.

Legal and regulatory framework

23. Government Notification: Detailed guidelines issued by Govt.

24. Compliance: Compliance with rules and regulations prescribed by the Government.

25. Periodic reviews: Regular reviews and updates of the plan.

Calculation of pension

26. Consideration of Basic Pay: Based on average basic pay of last 12 months.

27. Years of service: Pro rata pension for service below 25 years.

28. Full Pension: For service of 25 years or more.

Family Pension Details

29. Immediate Family: Spouse and dependent children.

30. Extended Family: May include dependent parents in certain cases.

31. Continuation of pension: Continues till death or remarriage of spouse.

Minimum pension details

32. Minimum amount: ₹10,000 per month.

33. Service Requirement: Minimum 10 years of service.

34. Guaranteed Pension: Ensures minimum pension amount irrespective of length of service.

Inflation adjustment

35. Periodic Revisions: Adjustments to keep pace with inflation.

36. Cost of Living: Pensions ensure that they keep up with the cost of living.

37. Regular Update: Regular update for pension amount.

Medical benefits

38. CGHS Coverage: Medical benefits under Central Government Health Scheme.

39. Family coverage: Extends to family members.

40. Comprehensive Care: Includes a wide range of medical services.

Implementation and impact

41. Effective Date: April 1, 2025.

42. Financial Security: Greater financial security for retirees.

43. Quality of Life: Improves the quality of life after retirement.

Administrative process

44. Pension Disbursement Authority: Responsible for disbursement of pension.

45. Application Process: Simplified application process for retirees.

46. Documentation: Documents required for claim of pension.

Legal framework

47. Government Guidelines: Detailed guidelines issued by Govt.

48. Compliance: Compliance with legal and regulatory requirements.

49. Periodic reviews: Regular reviews and updates of the scheme.

Additional information

50. Official Notifications : Available on the website of the Ministry of Personnel, Public Grievances and Pensions.

What is UPS ?