Unified Pension Scheme: The Unified Pension Scheme for Central Government Employees will come into effect on April 1, 2025, but it can be launched earlier. During the festive season, the government may issue a notification regarding the Unified Pension Scheme on October 15, 2024. The new pension scheme is among the government’s major priorities and is being finalized, and it will benefit lakhs of central employees.
Round Of Meetings Regarding Unified Pension Scheme
According to the Economic Times report, Cabinet Secretary TV Somanathan constantly holds meetings with different ministries and departments regarding the Unified Pension Scheme so that the new pension scheme can be implemented easily. Meanwhile, the finance secretary, TV Somanathan, was the committee chairman responsible for reviewing the National Pension Scheme. Based on the recommendations of the Somanathan Committee, the government has decided to bring the Unified Pension Scheme (UPS).
What Is The Specialty Of UPS
In the Unified Pension Scheme, the average of the basic salary + DA of the 12 months before the retirement of the central employees will be given as an assured pension. In the Unified Pension Scheme, employees must contribute to the Pension Fund. Employees will have to provide 10 percent of their basic pay and DA in UPS to the pension fund as they have done in NPS. The government will contribute 18.5 percent from its side to the pension fund for the employee, which was 14 percent in NPS. That is, the government is going to increase its contribution to UPS.
In the Unified Pension Scheme, government employees will be entitled to an assured pension under the fixed formula only after at least 25 years of service. 23 lakh government employees will benefit from this new pension scheme, which is unique because employees will get an assured pension on retirement, which was not there in NPS.
The Cabinet Had Approved UPS
On August 24, 2024, in the cabinet meeting chaired by Prime Minister Narendra Modi, the New Pension Scheme was approved to launch a unified pension scheme for government employees.
