Unified Pension Scheme: There is good news for 23 lakh central government employees. Unified Pension Scheme is going to be implemented from 1 April 2025. UPS is a combination of old pension scheme and NPS, in which the employee will get assured pension. Central government employees following NPS can also go to UPS.

Registered government employee

Keep in mind that UPS will be applicable only for government employees registered under NPS. Employees choosing UPS will not get any other policy concession, policy change or financial benefit. After choosing UPS, the decision cannot be changed. In this scheme, the government’s contribution will increase to 18.5% of the total amount of basic pay and dearness allowance (DA), which was 14% earlier. At the same time, employees will continue to contribute 10% for their pension.

Which employees will get the benefit

1. All those employees will get the benefit who have retired and are retiring under NPS on 31 March 2025.

2. Central employees will be given a fixed pension, which will be 50% of the average basic salary of 12 months.

3. To get pension, the employee has to serve for at least 25 years.

4. If the employee dies, the employee’s family will get 60 percent of the pension received by the employee.

5. Employees who have served for 10 years will be given a minimum pension of Rs 10,000.

6. If the employee’s service is less than 25 years and more than 10 years, then the pension amount will be decided on the basis of proportional allocation.

7. Irrespective of the number of working years of the employee, the minimum amount of his pension will not be less than Rs 10,000.

Let us know 4 major points of UPS

1. Assured Pension: 50 percent of the average basic pay received in the last 12 months before retirement for a minimum qualifying service of 25 years. This pay will be proportionate for shorter service period up to a minimum service period of 10 years.

2. Assured Family Pension: 60 per cent of the employee’s pension immediately before his death.

3. Assured Minimum Pension: Rs 10,000 per month on retirement after a minimum of 10 years of service.

4. Inflation Index: On assured pension, assured family pension and assured minimum pension. Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPE-IW).

5. In case of military personnel, a lump sum payment at the time of retirement, in addition to gratuity, for every completed six months of service, is 1/10th of the monthly emoluments (Pay + DA) on the date of retirement. This payment will not reduce the amount of assured pension.

Who has to fill which form?

1. Existing employees Employees joining government service after January 1, 2004, who have opted for NPS can choose UPS, they have to fill Form A2.

2. Newly recruited employees Employees joining service on or after April 1, 2025 can also choose this option and they have to fill Form A1.

3. Retired employees, who have retired earlier and have opted for NPS can also join UPS, they have to submit Form B2 along with eKYC documents.

4. In case of death of the employee, legally married spouse has to submit Form B6 along with eKYC documents.

5. The provision of 25 years of service will be applicable on taking voluntary retirement (VRS), such employees will have to wait till they attain the age of 60 years.

How much pension will you get?

For example, if the average basic salary of an employee for the first 12 months of retirement is Rs 50,000 and the employee has worked for 25 years with 10 per cent monthly contribution, the monthly pension will be Rs 25,000 + DR. If the employee has worked for 15 years, the pension will be Rs 15,000 + DR, which will be calculated at the rate of 30 percent. An employee with a basic salary of Rs 40,000 and 20 years of service will get 40 percent pension, which is equal to Rs 16,000 + DR. (These figures are shown as estimates, employees can also get the final result by calculating themselves)