Prime Minister Modi: UPS Reflects Commitment to Employee Well-being and Secure Future
The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to the Unified Pension Scheme (UPS), a comprehensive initiative aimed at providing financial security to government employees after retirement.
Key Features of the Unified Pension Scheme
Guaranteed Pension: Under the UPS, retired employees will receive a pension amounting to 50% of the average basic pay drawn in the last 12 months before retirement. This benefit is for those with at least 25 years of service. Employees with a service period between 10 to 25 years will receive a proportionate pension.
Family Pension Assurance: In the unfortunate event of a pensioner’s death, the scheme assures a family pension at 60% of the employee’s last received pension.
Minimum Pension Guarantee: The UPS also ensures a minimum pension of ₹10,000 per month for those who have completed at least 10 years of service upon retirement.
Inflation-Linked Adjustments: To maintain the value of pensions over time, the scheme includes inflation indexation for the guaranteed pension, family pension, and minimum pension, aligned with the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Additional Lump Sum Payment: Retirees will receive a lump sum payment at the time of retirement, in addition to the gratuity. This amount is calculated as 1/10th of the monthly emoluments (including pay and dearness allowance) for every six months of completed service. Importantly, this lump sum does not reduce the guaranteed pension amount.
Prime Minister Narendra Modi expressed his support for the scheme, stating, "We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future."
The Unified Pension Scheme reflects the government’s dedication to enhancing the welfare of its employees, ensuring a stable and dignified retirement.
