New Delhi

The Central Government has announced the notification of the Unified Pension Scheme (UPS) for its employees, promising assured payouts and inflation adjustments for those with 25 years or more of service. Starting April, employees will have a one-time opportunity to switch to UPS, ensuring a payout of 50% of their average salary over the last 12 years of service for those in the 25-year-plus category.

Employees currently under the National Pension System (NPS) who retire by March 31 are also eligible for UPS benefits, with the Pension Fund Regulatory and Development Authority (PFRDA) set to issue specific guidelines. This move, approved by the cabinet months ago, aims to address criticisms related to assured pensions and inflation adjustments, which have led some opposition parties to opt out of NPS in certain states.

UPS guarantees a minimum pension of Rs 10,000, along with dearness relief to counteract inflation, for employees with at least 10 years of service. However, the finance ministry clarified that assured payouts would not be available in cases of dismissal, removal from service, or resignation.