Unified Pension Scheme: Key Features and Impact for Employees
Saturday, 24 August 2024, 07:17
Unified Pension Scheme Approved by PM Modi
The Unified Pension Scheme has been officially approved by Prime Minister Narendra Modi's Cabinet, as announced by Information and Broadcasting Minister Ashwini Vaishnaw. This decisive move impacts approximately 23 lakh central government employees, with a potential total of 90 lakh beneficiaries if state governments also participate in the scheme.
Key Features of the Unified Pension Scheme
- Assured Pension: 50% of the average basic pay drawn over the last 12 months prior to retirement, with a minimum service requirement of 25 years.
- Proportional pension for lesser service, applicable with a minimum of 10 years.
- Family Pension: 60% of the employee's pension designated for family upon their demise.
- Minimum assured pension of ₹10,000 per month after 10 years of service.
- Inflation Indexation: Pensions will be adjusted based on the All India Consumer Price Index for Industrial Workers, just like serving employees.
- Lump-sum payment at retirement, in addition to gratuity, ensuring financial support during the transition.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.