With the objective of providing financial security and stability to central government employees after retirement, the central government on Saturday approved the Unified Pension Scheme, which will affect 23 lakh employees.
What are the Top Benefits of Unified Pension Scheme, Those who joined the service after January 1, 2004 will get the benefit of this scheme. More details about this project are given here.
Top Benefits of Unified Pension Schemes
- Assured pension : Employees with at least 25 years of service will receive a percentage of the average basic pay received in the 12 months preceding retirement. 50% will get assured pension. For those who have served less than 25 years, the pension will be commensurate with their period of service. The minimum qualifying service period is fixed at 10 years.
- Assured Family Pension: In case of death of an employee due to accident his spouse or dependents are entitled to family pension. Percentage of pension received by the employee before death. 60% will be available as family pension to their spouse.
- Assured Minimum Pension :10,000 per month post retirement for employees who have completed at least 10 years of service. Minimum pension is guaranteed.
- Inflation Index Both Surety and Family Pension are subject to inflation indexation. This adjustment ensures that pensions are in line with inflation.
- Rate hike compensation : Similar to in-service employees, retired industrial workers under UPS (AICPI-IW) get rate hike compensation based on All India Consumer Price Index.
- Lump Sum on Retirement : Along with gratuity employees receive a lump sum payment at the time of retirement. This payment shall be 1/10th of the employee’s monthly salary for every six months of service completed on the date of retirement including pay and dearness allowance. Payment of this lump sum does not reduce the amount of assured pension.
- Applies to retired employees also: The provisions of the Unified Pension Scheme are also applicable to the former retirees i.e. those who have already retired under the National Pension Scheme. The past due period will be paid with interest at PPF rates.
How to join a Unified Pension Scheme
Existing NPS, VRS along with NPS along with future employees have option to join UPS. This choice once made is final. UPS is implemented by the central government. It can also be adopted by state governments. But like the centre, the state government also has to pay an additional amount.
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