Daijiworld Media Network - New Delhi
New Delhi, Mar 24: Starting April 1, Central government employees with at least 25 years of service will be eligible for a fixed pension amounting to 50% of their average basic salary from the last 12 months before retirement. This benefit comes under the newly introduced Unified Pension Scheme (UPS), aimed at ensuring financial stability for retired employees.
The scheme is set to benefit around 23 lakh Central government employees, especially those seeking a predictable and stable pension rather than market-dependent returns. Employees with service tenure between 10 and 25 years will receive a minimum pension of ?10,000 per month. In case of a pensioner’s death, their family will receive 60% of the last drawn pension as a family pension.
Currently, government employees under the National Pension System (NPS) will have the option to transition to the UPS. Unlike NPS, which provides market-linked returns without a fixed payout, the new scheme ensures a guaranteed pension amount.
The UPS follows a hybrid model, integrating features from both the Old Pension Scheme (OPS) and the NPS. While the OPS—discontinued in 2004—offered fully government-backed pensions with dearness allowance revisions, the new UPS aims to strike a balance between financial security for employees and the government’s fiscal responsibilities.
The introduction of the UPS is a response to growing demands from government employees who expressed concerns over the uncertainties of NPS. Many have sought a stable pension system that does not fluctuate based on market performance.
This move may also influence state governments to reconsider their pension structures and adopt similar models. Employees who prioritize a guaranteed pension over market-linked growth are expected to prefer the UPS, while those comfortable with investment risks may still opt for NPS.
The Pension Fund Regulatory and Development Authority (PFRDA) has officially notified the UPS under NPS Regulations 2025, which outline eligibility criteria for three categories of employees:
1. Existing Central government employees under NPS as of April 1, 2025.
2. New recruits joining Central government services on or after April 1, 2025.
3. Retired employees who were under NPS and superannuated, voluntarily retired, or retired under Fundamental Rules 56(j) before March 31, 2025. In case of a deceased subscriber, their legally wedded spouse can opt for the UPS.
Starting April 1, 2025, enrolment and claim forms for eligible employees will be available online at https://npscra.nsdl.co.in