The Unified Pension Scheme (UPS) is introduced by the Central Government as an option under the National Pension System (NPS) for Central Government employees with effect from 1st April 2025.

The Unified Pension Scheme is designed to enhance retirement benefits for Central Government employees. Below are its key features:?

Eligibility:

• Applicable Employees: Central Government employees covered under the National Pension System (NPS) are eligible to opt for UPS. ?

Contributions:

• Government Contribution: The government contributes 18.5% of the employee's basic salary plus dearness allowance to the pension fund.?
• Employee Contribution: Employees contribute 10% of their basic salary plus dearness allowance monthly. ?

Pension Benefits:

• Assured Pension: Employees with at least 25 years of service receive 50% of their average basic pay from the last 12 months before retirement
• Proportional Pension: Those with service between 10 and 25 years receive a proportional pension, with a minimum of Rs.10,000 per month for at least 10 years of service.

Family Pension:

• In the event of the pensioner's death, the spouse receives 60% of the pension amount that was being drawn by the retiree.

Lump Sum Payment:

• At retirement, employees receive a lump sum equal to one-tenth of the monthly emoluments (pay plus dearness allowance) for every six months of completed service, in addition to their gratuity. This does not reduce the assured pension amount.

Inflation Adjustment:

• Pension amounts are indexed to inflation, ensuring they keep pace with the cost of living.

The UPS integrates features from both the Old Pension Scheme (OPS) and the National Pension System (NPS), aiming to provide comprehensive financial security to government employees post-retirement.