Good news for millions of government employees! New scheme implemented from April 1, know how you will get benefits

UPS Pension System: The new pension scheme has been implemented for central government employees from today. The scheme is an Integrated Pension Scheme (UPS). With this new pension scheme, all central employees who have been serving for at least 25 years will be allowed to be transferred to UPS from 1 April. Under UPS, any person will be eligible to receive 50 percent of his average basic salary for the last 12 months before retirement. In this new pension scheme of the government, about 23 lakh government employees are going to get economic security after retirement.

For whom is this UPS scheme?
The UPS Pension Scheme is specially designed for those who prefer stable and fixed income rather than market -based pension. Under the new scheme, employees who serve more than 10 years but less than 25 years will get a minimum monthly pension of Rs 10,000. Enrollment and claim form for the scheme will be available on the official website from April 1, 2025.

What is the hybrid model of UPS?
In the event of the death of the pensioner, his family will get 60 percent of the final pension as family pension. In addition, employees of the central government who are currently under NPS can switch to UPS. The scheme is designed as a hybrid model. This includes the characteristics of both the Old Pension Scheme (OPS) and the National Pension System (NPS).

Why is UPS scheme required?
The NPS does not make a fixed payment, but gives market -based returns and ensures a fixed pension amount, which is a new scheme separate from NPS. In 2004, OPS was replaced by NPS. The OPS provided a full government -backed pension with periodic adjustment in dearness allowance. UPS was launched in view of increasing concerns among government employees about NPS’s uncertainties. Many government employees demanded a more forecasted pension scheme to ensure financial stability after retirement. The government aims to establish a balance between employees security and its financial obligations through this new scheme.

This step can also affect the state governments to adopt the same pension model. Those serving over 25 years will benefit the most from 50 percent guaranteed pension. UPS can be a better option for employees who want stable income after retirement. While employees who are comfortable with market fluctuations can priority NPS for potentially high returns.

PFRDA divided employees into three categories

Last week, the Pension Fund Regulatory and Development Authority (PFRDA) officially notified the operation of UPS under NPS Exchange 2025.

These rules divide central government employees into three categories…

– In the first category, till 1 April 2025, the service includes existing central government employees who fall under NPS.

In the second category, the services of the Central Government include newly recruited employees, who will join the service on or after April 1, 2025.

– The third category consists of central government employees who were covered under NPS and who retired on or earlier on 31 March 2025. (Voluntarily retired or retired under the fundamental rule 56 (J)) and are eligible for UPS or legally married spouses, who have retired or died before using the option of UPS.

– Enrollment and CLA Form for all these categories of central government employees from 1 April 2025 https://npscra.nsdl.co.in But will be available online.