Unified Pension Scheme: Key Features Approved by PM Modi
Saturday, 24 August 2024, 07:17
Unified Pension Scheme: Overview and Features
Unified Pension Scheme, approved by Prime Minister Narendra Modi, aims to significantly improve the pension framework for government workers. The scheme promises numerous benefits for over 23 lakh central government employees, extending potentially to a total of 90 lakh beneficiaries if state governments choose to participate.
Financial Implications of the Unified Pension Scheme
- Expenditure Impact: Initial arrears are estimated at Rs 800 crore, with an annual increase of about Rs 6,250 crore.
- Effectivity: The scheme is set to be implemented from April 1, 2025.
Key Features of the Unified Pension Scheme
- Assured Pension: 50% of the average basic pay from the last 12 months for a minimum of 25 years of service.
- Family Pension: 60% of the employee’s pension granted to the family upon the employee's demise.
- Minimum Pension Assurance: Guaranteed minimum pension of Rs 10,000 per month after a minimum of 10 years of service.
- Inflation Support: Pension increases with Dearness relief based on the All India Consumer Price Index.
- Lump-Sum Payment: An additional amount equivalent to 1/10th of monthly emolument for every six months of completed service.
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.