Unified Pension Scheme UPS: The Central Government has approved the Unified Pension Scheme (UPS) for central employees, which will benefit about 23 lakh employees. This scheme has been implemented with the aim of providing financial security and stability to government employees after retirement. Here is a brief description of the key features of UPS:
Assured Pension
Under UPS, employees who have worked for at least 25 years will get 50% of their average basic salary in the 12 months before retirement as a fixed pension. Employees who retire with less than 25 years of tenure will get their pension in proportion to their service period. The minimum service period has been fixed at 10 years.
Assured Family Pension
If an employee dies, his wife or husband will get the family pension. This family pension will be 60% of the amount that the employee was receiving during his lifetime.
Assured Minimum Pension
Under UPS, employees who have completed at least 10 years of service will be guaranteed a minimum pension of ₹10,000 every month on retirement.
Inflation Indexation
Under UPS, the amount of pension and family pension will be adjusted with inflation, so that the real value of the pension does not decrease.
Dearness Relief
After retirement, employees will also get dearness relief, which will be given on the basis of the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Lump Sum Payment on Superannuation
Employees will also get lump sum payments on retirement. This payment will be 10% of the employees’ last monthly salary (sum of basic salary and dearness allowance), which will be given on the basis of every six months of their service. This lump sum payment will not affect the amount of the fixed pension.
Prime Minister Narendra Modi said about UPS that this scheme will ensure the dignity and financial security of government employees. Currently, 23 lakh central employees will benefit from UPS, and if state governments also adopt this scheme, this number can increase to 90 lakh.
The scheme aims to provide a stable and financially responsible option compared to the Old Pension Scheme (OPS). Under OPS, employees used to get 50% of their last salary as pension, which kept increasing with inflation. UPS provides more stability and security than this.