More Stories

Informist, Tuesday, Apr. 1, 2025

 

NEW DELHI – The government has operationalised the Unified Pension Scheme from Tuesday--the first day of the financial year 2025-26 (Apr-Mar)--and government employees can now make a switch from the National Pension System to this, if they are interested, according to the portal for the unified pension plan. 

 

Along with the option to switch, the government is also giving an option to make fresh registrations for the Unified Pension Scheme. At the time of announcing the scheme, the government had said that central government employees will be given the option to choose between the National Pension System and the Unified Pension Scheme and that they will get the option to switch from the National Pension System to the Unified Pension Scheme or vice versa only once.

 

The Unified Pension Scheme aims to provide an assured pension, family pension, and an assured minimum pension for government employees. To address the demand for assured returns, the Cabinet decided to roll out this scheme, in which 50% of the average basic pay drawn in the last 12 months prior to superannuation for a minimum qualifying service of 25 years would be given as an assured pension. For those with less than 25 years but over 10 years of service, the assured sum would be a proportionate sum calculated on a pro-rata basis.

 

 

 

The scheme also assures family pension, under which 60% of the pension will be given to the immediate family after the demise of an employee. The third feature is an assured minimum pension, which is devised to address the issue of employees with government service for at least 10 years. Under this, 10,000 rupees will be given to such employees as a minimum assured pension. 

 

While employees' contribution to the Unified Pension Scheme will continue to be at 10%, the Centre's contribution will be raised to 18.5% from 14.0%. There is a provision that will allow the Centre to revaluate its contribution once every three years, but there is no opportunity to tweak staff's contributions.  End

 

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.