A minimum pension of Rs 10,000 per month, who how to get the benefits

UPS: The Unified Pension Scheme is set to be implemented on April 1, 2025. Employees who retire under the National Pension Scheme (NPS) on March 31, 2025, will be eligible for its benefits, including the payment of arrears. The government’s contribution to the Unified Pension Scheme will be 18.5%, compared to 14% under the NPS.

Benefits of UPS

From April, government employees will have the option to select either the Unified Pension Scheme or the NPS. The Unified Pension Scheme combines advantages from both the Old Pension Scheme (OPS) and the National Pension Scheme (NPS). It is important to note that the OPS was discontinued in 2004, leading to the introduction of the NPS. The Unified Pension Scheme will only apply to government employees who are registered under the NPS. Employees opting for the Unified Pension Scheme will not receive any additional policy concessions, changes, or financial benefits.

A minimum pension of Rs 10,000 per month

The pension will be calculated as 50% of the average basic pay received in the last 12 months prior to retirement, contingent upon a minimum qualifying service of 25 years. For those with a reduced service period of at least 10 years, the pension will be pro-rated. A minimum pension of Rs 10,000 per month will be granted to retirees with at least 10 years of service. In the event of the employee’s death, the family will receive 60% of the pension that the employee was entitled to prior to passing.

Who can get the benefits

Eligibility for benefits will be extended to central employees, who will receive a fixed pension amounting to 50% of their average basic salary over the last 12 months. To qualify for a pension, an employee must have served a minimum of 25 years. In the case of the employee’s death, the family will be entitled to 60% of the pension. Employees with a service duration of at least 10 years will receive a minimum pension of Rs 10,000. For those with service between 10 and 25 years, the pension amount will be determined on a pro-rata basis.

Regardless of the total years of service, the minimum pension will not fall below Rs 10,000. Employees who choose the Unified Pension Scheme under the NPS will not be eligible for any other policy concessions, changes, financial benefits, or parity with future retirees, including after retirement.