The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Unified Pension Scheme (UPS), which aims to provide assured pensions for government employees. The scheme will take effect from April 1, 2025.

Under the UPS, government employees will receive 50 percent of their salary as a pension, based on the average basic pay drawn over the last 12 months prior to retirement, provided they have a minimum qualifying service of 25 years. The scheme also includes an assured family pension, where 60 percent of the employee’s pension can be immediately drawn by their family upon their demise. Additionally, a minimum pension of Rs 10,000 per month is assured for employees who retire after at least 10 years of service.

In addition to the UPS, the Cabinet has approved the continuation of three umbrella schemes under a unified central sector scheme called ‘Vigyan Dhara,’ managed by the Department of Science and Technology (DST). The scheme has a proposed outlay of Rs 10,579.84 crore for the period of the 15th Finance Commission, from 2021-22 to 2025-26. This move aims to consolidate various initiatives under a single framework to enhance the effectiveness of scientific and technological advancements in the country.

Announcing Cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said the Unified Pension Scheme (UPS) announced that government employees will now be eligible to get 50 per cent of the average basic pay drawn over the last 12 months before the superannuation as pension.

For this full pension or 50 per cent of pay as the pension, he said, the eligibility service length will be 25 years.

However, he said, it would be proportionate for a lesser service period up to a minimum of 10 years of service.

NPS subscribers can now opt for the Unified Pension Scheme (UPS), which offers assured pension applicable from the beginning of the next financial year.

Last year, the finance ministry set up a committee under Finance Secretary TV Somanathan to review the pension scheme for government employees and suggest any changes, if needed, in light of the existing framework and structure of the National Pension System.

Several non-BJP-ruled states have decided to revert to the DA-linked Old Pension Scheme (OPS) and also employee organisations in some other states have raised demand for the same.

(With inputs from agencies)