The Centre is pushing hard to notify the Unified Pension Scheme (UPS) by October 15, with a targeted implementation date of April 1, 2025. Cabinet Secretary TV Somanathan is leading the review meetings for the scheme. The UPS will provide government employees with a lifelong monthly benefit amounting to 50% of their last drawn pay.
The government is considering expanding the scheme to include up to 90 lakh beneficiaries if state governments decide to participate. The plan aims to bring a unified approach to the pension system, ensuring consistency and reliability in the post-retirement benefits provided to government employees. The Goa government is also set to introduce a Unified Pension Scheme for its employees.
This development aims to streamline and improve the pension process, benefiting a significant number of government workers in the state.
Centre finalizes unified pension plan
Official sources say the new pension scheme is expected to simplify the existing system, making it more efficient and user-friendly.
The announcement is part of a broader effort by the state government to enhance the welfare of its employees. Central government employees can potentially receive a higher pension under the Unified Pension Scheme (UPS) compared to the National Pension System (NPS). Even with a salary of Rs 2,00,000 per month, a government employee can secure a monthly pension of Rs 1 lakh for life upon retirement under UPS.
However, under NPS, the same pension would require a monthly income of Rs 1.56 lakh. The central government contributes 18.5% of an employee’s salary (basic pay + DA) to their retirement fund every month under UPS, with 10% of the employee’s salary also being diverted to this account. Under NPS, the government contributes 14% of the employee’s salary, with employees required to divert 10% of their wages towards their NPS account.
The Government of India launched UPS with the expectation that 99% of current NPS subscribers would transition to it, leaving NPS primarily for corporate employees.
