What Are The Key Features Of Modi Govt's Unified Pension Scheme?

Unified Pension Scheme: The Modi government on Saturday announced a new Unified Pension Scheme (UPS), which will be effective from April 1, 2025. Announcing the big decision, Union Minister Ashwini Vaishnaw said the new scheme for government employees will assured them pension.

“Government employees have demanded some changes in the New Pension Schemes. For this, PM Modi constituted a committee under the chairmanship of Cabinet Secretary TV Somanathan. This committee held more than 100 meetings with different organisations and nearly all the states.”

“There's a difference between how PM Modi works and the oppositions works. Unlike the opposition, PM Modi believes in holding extensive consultations. Following extensions consultations with everyone, including Reserve Bank of India and World Bank, the committee has recommended a Unified Pension Scheme. Today, the Union Cabinet has approved this Unified Pension Scheme, and it will be implemented in the future.”

Unified Pension Scheme Key Features  

• According to the new Unified Pension Scheme, people who will complete 25-year tenure will be eligible to get full pension.
• The Unified Pension Scheme has been brought in place of ‘Old and New’ pension schemes.  
• As per UPS, government employees will be eligible to get 50 per cent of basic pay as pension after completing at least 25 years of service.
• Government employees will get Rs 10,000 as pension after completing 10 years in service.
• 60 per cent of pension money will be given to the employee immediately before his or her demise.
• 50 per cent assured pension is the first pillar of the Unified Pension Scheme.
• The second pillar will be assured family pension. About 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS).
• There will be an option for the employees to opt between NPS and UPS.

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