Unified Pension Scheme: Ensuring Financial Security for Government Employees
Unified Pension Scheme Overview
The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Unified Pension Scheme (UPS) to assure minimum pensions for government employees. This scheme serves as a crucial step in providing financial security, with an assured pension of 50% of the salary for those under the National Pension System (NPS).
Benefits of the Unified Pension Scheme
- Approximately 23 lakh government employees will benefit from the UPS.
- State governments can also implement the UPS, potentially increasing beneficiaries to around 90 lakh.
- The scheme incurs an initial expenditure of Rs 800 crore and an annual cost rise of Rs 6,250 crore.
Implementation and Next Steps
The UPS will take effect from April 1, 2025, offering employees a choice between the NPS and UPS. Existing NPS subscribers can switch to the UPS. This scheme is based on extensive consultations, with a committee having conducted over 100 meetings for recommendations.
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.