Unified Pension Scheme 2024: On 24th of August 2024, central cabinet has taken big step and decided to approve a new pension scheme for central civilian employees. The name of the initiative is Unified Pension Scheme 2024. Under this new pension scheme, assured pension will be provided to about 23 lacs civilian employees working in different ministries and department of Government of India. The cabinet approval came at a time when employees have been demanding to reinstate Old Pension Scheme (OPS). The step is a welcome step for civilian central employees and through this, government will provide assured pension benefits to its employees after retirement.
If you are a central government employee and want to know more about this new big initiative of Modi government, you need to read this article till the end. In this article, we have covered all crucial information about Unified Pension Scheme step by step by reading which till the end you will be able to understand every aspects of this scheme. Lets get started and know in details Benefits and features of Unified Pension Scheme and how it will help lacs of employees secure their future.
About Unified Pension Scheme (UPS) 2024
Central Minister Shri Ashwini Vaishnav while talking to media explained the features of Unified Pension Scheme. Employees who provides at least 25 years of service will be accorded assured pension. Such pension will be the 50% of last 12 month basic pay received by the employee. Moreover, those who take voluntary retirement after 10 years of service will be given a minimum pension of Rs. 10,000 per month. Family pension has also been included in the new scheme which will be 60% of the last pension received by the deceased employee. This initiative will provide relief to about 23 lacs civilian employees working in central government ministries and departments.
Unified Pension Scheme 2024 Details in Summary
| Scheme | Unified Pension Scheme 2024 |
|---|---|
| Concerned Government | Central Govt. of India |
| Ministry | Ministry of Personnel, Public Grievances and Pensions |
| Department | Department of Pensions and Pensioner’s Welfare |
| Objective | To provide assured pension to central government employees |
| Benefits | Assured pension, minimum assured pension and Family Pension |
| Current Pension Scheme | National Pension Scheme (NPS) |
Objectives of Unified Pension Scheme 2024
Till now after 2004, central government employees have been registered with National Pension Scheme (NPS) that entails contribution of employees at a rate of 10% of their basic pay and about 14.5% contribution is made by the government. But still, employees are not entitled to get assured pension. With this new initiative of the government, now employees will receive assured pension after 25 years of continuous service. This will ensure welfare of employees and their family as it will also include assured family pension. This will help secure the future of 23 lacs employees of central government.
Key Features of Unified Pension Scheme 2024
Key features of Unified Pension Scheme 2024 can be understood from the points given below.
- Unified Pension Scheme 2024 has been brought by the central government for the welfare of the central civilian employees.
- This will ensure assured pension after retirement to 23 lacs central government employees.
- UPS will come into effect from 01 April 2025 and employees will have two options including NPS and UPS.
- This will provide assured pension to all future employees in addition to current 23 lacs employees.
- The employee will have to select one of the Two pension schemes either NPS or UPS which cannot be changed later.
- Currently, employees have to contribute 10% of their salary to pension account which will not be raised whereas central government will increase its contribution from 14% to 18.5%.
- On retirement, apart from gratuity, retiring employees will be given Lump-Sum Payment that will be 1/10th of monthly emolument (Pay + DA) as on the date of superannuation for every completed six months of service.
- Lump-Sum payment will not affect the quantum of assured pension given to the retiree.
- Those already retired will also be entitled for UPS and will receive the arrears with interest @ PPF rates.
Benefits of Unified Pension Scheme 2024
Now with this pension scheme, employees will have better option of availing pension benefits irrespective of their contribution which will remain stagnant. Benefits of Unified Pension Scheme can be understood from the points given below.
- After it gets approval of the Union cabinet, now about 23 lacs central government employees will have assured pension, minimum assured pension and assured family pension.
- To avail of assured pension under UPS, the employee will have to serve for at least 25 years.
- This way, the pension of the employee will be 50% of the average basic pay received during 12 months just before the superannuation/retirement.
- In case of demise of the pensioner, spouse will be granted assured pension @ 60% of the amount of last pension received by the deceased pensioner.
- In case of voluntary retirement after 10 years of service, employees will receive a minimum pension of Rs. 10,000/- per month.
UPS Benefit to 23 Lacs central employees, government budget will increase
To implement Unified Pension Scheme 2024, the central government will have to increase its budget on pension. The government will spend about 800 crores rupees to grant arrears to already retired employees. Moreover, to provide assured pension to 23 lacs employees, the government will have to increase 6,250 crore rupees on its pension fund. The government has intimated that this pension scheme will be given effect from 01 April 2025. For its implementation, the government will take necessary action to prepare Support Mechanism and necessary legal, regulatory and accounting changes.
How to Apply for Unified Pension Scheme 2024
The government has made it clear that this initiative will come into force from 01 April 2025 and all employees will have two options now. Employees will have to choose either NPS or UPS. Once chosen it cannot be changed later in any case. The government will issue directions and application form for Unified Pension Scheme that will be available to all ministries and departments. Once it come into effect, employees will have to take following action.
- Receive the Unified Pension Scheme From the departmental office.
- Fill in the mandatory details in required fields in the form.
- Write a application addressed to the Head of Office or Head of the Department requesting for changing their pension account from NPS to UPS.
- Enclose the filled UPS form with the application.
- Submit it to the employees looking after the diary.
- Take the receipt from their.
- This way employees can make application for switching to the Unified Pension Scheme 2024
FAQs
What is Unified Pension Scheme 2024?
Unified Pension Scheme is a new initiative of central government for its employees. Under this pension scheme, assured pension, minimum assured pension and assured family pension will be accorded to central government employees.
What are the key benefits of Unified Pension scheme 2024?
UPS will ensure assured pension for central employees on retirement or superannuation after a minimum of 25 years of service. The pension amount received after this period will be 50% of the average salary received during the last 12 months of service just before the retirement.
How many years of service will be required to avail of UPS 2024?
Under UPS 2024, the employees will be entitled for a full pension if served for at least 25 years. Whereas quitting the job after 10 years of service will render them to receive a minimum of Rs. 10,000 per month as minimum assured pension.
Useful Links
| Name of Scheme | Unified Pension Scheme 2024 |
|---|---|
| Department of Pensions and Pensioner’s Welfare | Click Here |
| Unified Pension Scheme in Hindi | Click Here |
| Yojana King Home | Click Here |