The Unified Pension Scheme (UPS) for 23 lakh Central Government Employees was approved by the Cabinet on Saturday (August 24th, 2024). UPS guarantees that all Central Government workers who have worked for 25 years or more will receive a pension equal to 50% of their most recent income from the previous 12 months. They will also be qualified for inflation-linked pension amount increases after retirement. TV Somanathan, the Cabinet Secretary-designate, announced that the new plan will take effect on April 1st, 2025, and that individuals who retire by March 31st, 2025, will be eligible for its advantages, which include paying any arrears. With the 2019 fiscal year, Employees will have the choice between the UPS and NPS.
The UPS’s key characteristics are:
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