New Delhi: The central government is introducing a new scheme, integrated pension scheme for its employees. Under this scheme, central employees serving for at least 25 years, from April 1, will be eligible to receive 50 percent of their basic salary for the last 12 months before retirement under UPS. The government is preparing to provide financial security to at least 23 lakh employees after retirement through this scheme.
UPS has been specially launched keeping in mind those who prioritize stable and estimated income rather than a pension related to the market. Under the new scheme, employees with more than 10 years but services below 25 years will get a minimum pension of Rs 10,000 per month. Registration and claim forms for this scheme will be available on the official website from April 1, 2025.
UPS is designed as a hybrid model.
On the death of the pensioner, his family will get 60 percent of the final pension as a family pension. Additionally, central government employees, who are currently under the National Pension System (NPS), can switch to UPS. The scheme has been designed as a hybrid model, which includes the characteristics of both the Old Pension Scheme (OPS) and the National Pension System (NPS).
Why is it necessary to start this scheme?
While market -based returns are found in NPS, unlike NPS, the new scheme is guaranteed a fixed amount of pension in UPS. In 2004, OPS was replaced by NPS. OPS provided full government subsidized pension with periodic adjustment in dearness allowance. UPS was launched in view of increasing concerns among government employees regarding the uncertainty of NPS. Many government employees demanded a more predicted pension system to ensure financial stability after retirement. The government aims to establish a balance between the safety of employees and their financial responsibilities through this new scheme.
This step can affect the state governments to adopt the same pension model. Those who will serve more than 25 years will get 50 percent guaranteed pension benefit. After retirement, employees who seek stable income may receive a better scheme, while employees who are comfortable with market fluctuations may prioritize NPS for potentially higher returns.
PFRDA has divided employees into three categories.
Last week, the Pension Fund Regulatory and Development Authority (PFRDA) officially notified UPS functioning under NPS Regulations 2025.
These rules divide the central government employees into three categories: –
The first category consists of the current central government employees who are in service till April 1, 2025, who fall under NPS.
The second category includes new employees recruited in the services of the Central Government, who will join the service on or after April 1, 2025.
The third category consists of central government employees, who were under NPS and who have retired on or before 31 March, 2025 (have been volunteered voluntarily or have retired under the fundamental rule 56 (J)) and are eligible for UPS or legally married husband or wife who have retired before using the option of UPS.
Nomination and Claim Form for all these categories of central government employees from 1 April 2025 – https://npscra.nsdl.co.in But will be available online.
