The government has officially launched the Unified Pension Scheme (UPS) for central government employees, effective April 1, 2025. The scheme introduces a minimum pension of ₹10,000 per month for eligible employees, ensuring financial stability post-retirement. This move is expected to benefit nearly 23 lakh employees across various departments.
The UPS is designed to provide a structured and secure pension system, offering guaranteed benefits to both existing and newly recruited employees. It also covers certain retired employees who were previously under the National Pension System (NPS).
Guaranteed Minimum Pension for Eligible Employees
Under the new scheme, central government employees who have completed at least 10 years of service are assured a minimum pension of ₹10,000 per month. Those with 25 years or more of service will receive 50% of their average basic pay from the last 12 months before retirement. Employees who have served between 10 and 25 years will receive a pension amount proportionate to their tenure.
In case of an employee’s death, the family will receive 60% of the pension amount, providing financial support to dependents. This provision ensures that government employees and their families have a stable income even after retirement.
Who is Eligible for the Unified Pension Scheme?
The UPS covers three categories of employees. First, those who were in service as of March 31, 2025, under the National Pension System (NPS). Second, employees who join government service after April 1, 2025, who can opt for either NPS or UPS. Lastly, certain retired employees under NPS before April 1, 2025, may qualify if they meet specific criteria.
However, not all employees qualify. Those who retire with less than 10 years of service, resign, or are dismissed from service will not be eligible for pension benefits under UPS. Employees who voluntarily retire after completing 25 years of service will only receive pension payments from their official retirement age.
Enrollment Process for the Unified Pension Scheme
Eligible employees can enroll in the minimum pension scheme through the Protean CRA portal. The process involves submitting necessary enrollment and claim forms online, ensuring a smooth transition for those opting for UPS.
The government has emphasized that the scheme aims to provide long-term financial security. The pension will be inflation-linked, ensuring that retirees’ purchasing power remains stable over time.
Impact of the New Pension Scheme
With this initiative, the government aims to address concerns over post-retirement financial stability for its employees. The introduction of a minimum pension guarantees that even those in lower pay scales receive a basic level of financial support after retirement.
The move is also expected to bring greater confidence among government employees, as they now have a clear and structured pension plan. The guaranteed payouts and family pension provisions further strengthen financial security for dependents.
Final Thoughts
The minimum pension of ₹10,000 under the Unified Pension Scheme is a significant step toward providing a stable income for central government employees after retirement. By ensuring a guaranteed pension for those with 10 or more years of service, the government has reinforced its commitment to the welfare of its workforce.
With an easy enrollment process and structured benefits, the UPS is expected to become a preferred choice for government employees. This scheme not only provides financial stability but also enhances confidence in post-retirement life.