The Unified Pension Scheme (UPS) was launched on April 1, 2025, and offers a hybrid pension model with features assimilated from those under the predictability of the Old Pension Scheme (OPS) and certain select features of the NPS. Designed for better retirement security, a fixed income for the pensioner is guaranteed, keeping in view the sustainability of the funds.
Eligibility & Timeline: Who Can Opt In?
UPS is available to:
- Central government employees who were under NPS as of April 1, 2025
- New entrants joining on or after this date
- Retirees who left service on or before March 31, 2025, with qualifying service of a minimum of 10 years, including those who retired under FR 56(j).
- The employees had up to June 30, 2025, to keep with the UPS; for eligible employees and previous NPS subscribers, the last date was later extended up to September 30, 2025.
Key Features & Benefits Of UPS
- Guaranteed Payout: A fixed pension will be declared, either 50% of the average basic pay of the 12 months prior to retirement (for 25+ years of service) or the minimum of ₹10,000 per month (for 10+ years of service).
- Gratuity Reinstated: UPS has reinstated retirement and death gratuity akin to OPS, thereby enhancing financial security for retirees and their families.
- Family Pension Protection: If the pensioner dies, the spouse will be entitled to 60% of the last monthly pension, which will then be subjected to dearness relief indexed against inflation.
Official Rules & Administrative Framework
The Union Cabinet approved UPS in August 2024, which brought about official notifications in January and March 2025, following which service rules under the service under the Unified Pension Scheme under NPS Rules, 2025 were gazetted.
These Rules Deal With:
- Enrollment Procedure
- Switch back to NPS (only once and at least one year before retirement or three months before voluntary retirement)
- Timely compliance of contributions and delay compensation
- Treatment of benefits in case of death, disability, or disciplinary action.
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