PM Modi-led Cabinet Greenlights ‘Unified Pension Scheme’ for Govt Employees

GG News Bureau
New Delhi, 25th August. The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to the Unified Pension Scheme (UPS), a major initiative aimed at providing a more secure and comprehensive pension system for government employees.

The UPS offers several key benefits, including an assured pension amounting to 50% of the average basic pay drawn over the last 12 months before retirement, provided the employee has completed a minimum qualifying service of 25 years. For those with shorter service, the pension will be proportionately adjusted, with a minimum eligibility of 10 years.

The scheme also includes an assured family pension, which is set at 60% of the employee’s pension immediately before their demise, and an assured minimum pension of ₹10,000 per month for those retiring after at least 10 years of service. To protect against inflation, both the pension and family pension will be indexed accordingly.

Additionally, beneficiaries will receive Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), similar to the adjustments made for serving employees. Upon retirement, a lump sum payment will be made in addition to the gratuity, calculated as one-tenth of the monthly emoluments (pay + DA) on the date of superannuation for every completed six months of service. This lump sum payment will not affect the assured pension amount.

The approval of the Unified Pension Scheme marks a significant step in enhancing the financial security of government employees post-retirement.