All you need to know about Unified Pension Scheme

The Union Cabinet, led by Prime Minister Narendra Modi, has approved the Unified Pension Scheme (UPS) for government employees

This scheme ensures an assured minimum pension and family pension, benefiting approximately 23 lakh central government employees

Employees will have the option to choose between the New Pension Scheme (NPS) and the newly introduced UPS

State governments can also opt for UPS, potentially increasing the beneficiaries to around 90 lakh

The scheme will be effective from April 1, 2025, with an initial expenditure of Rs 800 crore and an annual cost increase of Rs 6,250 crore in the first year

Key features include a 50% assured pension of the average basic pay over the last 12 months for a minimum of 25 years of service, and a family pension at 60% of the employee's pension

There is also an assured minimum pension of Rs 10,000 per month after a minimum of 10 years of service

A committee, chaired by Cabinet Secretary TV. Somanathan, held over 100 meetings with various organizations, including the RBI and the World Bank, to formulate the scheme.

Union Minister Ashwini Vaishnaw highlighted that the scheme was developed based on extensive consultations, contrasting it with the opposition's approach

The UPS aims to address the demands of government employees for changes in the existing New Pension Scheme