Unified Pension Scheme has recently been legalized in India for government personnel to provide renewed income to the employees after retirement. This scheme will bring in a minimum pension of ₹10000 per month to employees so as to ensure they have a good lifestyle after retirement.
Summary of the Features of the Proposed Unified Pension Scheme
The UPS guarantees that every employee with a service duration of more than 25 years would be paid 50% of the average of basic salary from the last years of service. This change needed to be organized to meet a request from numerous employee who wish to have a fixed pension pay.
Eligibility and Benefits
Those employees who completed 10 or more years of service will get minimum pension of ₹10,000/- per month each. Employees who have worked from 20 up to 25 years will have the pension equal to half of the average basic pay for the final year, thus gaining better financial prospect in the future. The scheme also provides family support: In the case that an employee death occurs the spouse will be eligible to be paid 60% of the pension amount.
Implementation and Options
From the 1st of April, 2025 current members of NPS (New Pension Scheme) can opt for UPS. The government will also allow arrears with interest to all employees who retired between the year 2004 and the end of march 2025.
With this new scheme government has come closer to giving financial security of life to its employees and in turn to their families.
