The Modi government has made a big announcement for central government employees. A new pension scheme called the ‘Unified Pension Scheme (UPS)’ has been introduced for pensioners. Until now, the ‘National Pension System (NPS)’ was in effect across the country. Many people had raised objections to the NPS and demanded a new pension scheme. The cabinet meeting on Saturday approved the new plan to address that request. The new plan will begin implementation on April 1, 2025.
According to Indian Union Minister Ashwini Vaishnaw, about 23 lakh central government employees will be eligible for this new plan. He also noted that there is a committee to deliberating to suggest farther changes to the pension structure. The committee held several meetings with different employee organizations across the country. They also discussed with the Reserve Bank of India (RBI) and other bodies also. The committee recommended the new Unified Pension Scheme (UPS). Pensioners will have the option to choose between NPS and UPS, depending on their preference.
Do you know?
The Unified Pension Scheme (UPS) offers assured pension, gratuity, dearness relief and more for Central Government employees.#UPS pic.twitter.com/hplAjpv7in— Ministry of Railways (@RailMinIndia) September 20, 2025
What are the benefits of the new scheme?
First:
Retired employees will get 50% of their last basic salary as pension. But they must work for at least 25 years to get this benefit.
Second:
If an employee leaves the job after 10 years, they will still get a pension. In that case, the person will get ₹10,000 per month as pension.
Third:
If the pensioner dies, the family will get 60% of the pension. This means the family will receive 60% of what the employee was getting at the time of death.