Cabinet Approves Unified Pension Scheme (UPS)
The Union Cabinet, chaired by Prime Minister Narendra Modi, has given the green light to the Unified Pension Scheme (UPS). Key features of the UPS include:
- Assured Pension: Retirees will receive a pension amounting to 50% of their average basic pay from the last 12 months prior to retirement, provided they have a minimum of 25 years of service. For those with shorter service, the pension will be proportionate, with a minimum qualifying period of 10 years.
- Assured Family Pension: In the event of the pensioner’s demise, their family will receive 60% of the pension amount.
- Assured Minimum Pension: A minimum pension of ₹10,000 per month is guaranteed for those retiring after at least 10 years of service.
- Inflation Indexation: Pensions, family pensions, and the minimum pension will be adjusted for inflation, with Dearness Relief linked to the All India Consumer Price Index for Industrial Workers (AICPI-IW), similar to the benefits provided to serving employees.
- Lump Sum Payment at Superannuation: In addition to gratuity, retirees will receive a lump sum payment of 1/10th of their monthly emoluments (pay + DA) for every six months of completed service. This payment will not reduce the amount of the assured pension.
