New Delhi, 26 January (IANS). The Union Finance Ministry has notified the operation of Unified Pension Scheme (UPS) as an option under the National Pension System (NPS) for government employees from April 1. This will provide guaranteed retirement benefits to central government employees.
The notification issued by the Finance Ministry said that the Unified Pension Scheme will be applicable to central government employees who come under the National Pension System and who have chosen this option under NPS.
The notification further stated that the Pension Fund Regulatory and Development Authority (PFRDA) will issue rules for the operation of UPS. The scheme will be implemented from 1 April 2025.
In the Unified Pension Scheme, central employees will be provided 50 percent of the average salary of 12 months before their retirement. However, for this, at least 25 years of service should be completed.
At the same time, the employees who have given less than 25 years of service, will get pension on a proportional basis.
The Union Cabinet chaired by Prime Minister Narendra Modi on August 24, 2024 approved a new pension policy for about 23 lakh central government employees, in which a new pension system was submitted as UPS, under which monthly payment form 50 percent of the basic salary will be given in. The decision was taken at the request of the employees unions, who demanded a guarantee of retirement benefit.
The government nominated the post of Cabinet Secretary in April 2023. A high -level committee was constituted under the chairmanship of Somathan. This committee was about the review of NPS and new pension system.
The government took this step then. When the opposition parties sitting in power in some states were switching towards the old pension scheme and this was increasing the economic burden.
-IANS
ABS/
