DOP&T

Introduction of Unified Pension Scheme (UPS) for Central Government Employees under National Pension System

By TEAM CIRCULAR EXPRESS • 24 Jan 2025

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#DOPT #Ministry of Finance #Pension #Transfer

The Ministry of Finance has introduced the Unified Pension Scheme (UPS) as an option for Central Government employees covered under the National Pension System. The scheme provides for an assured pension payout based on qualifying service and average basic pay, along with a lump sum payment on superannuation. It includes provisions for family pension, dearness relief, and a corpus structure comprising individual and pool funds. The scheme becomes effective from April 1, 2025, and offers specific guidelines for eligibility, investment patterns, and payout calculations. Employees opting for this scheme will have their existing National Pension System corpus transferred to their individual corpus under the UPS.

is it pertains to a particular service or cadre

Central Government employees

issue for which issued

Introduction of Unified Pension Scheme (UPS)

is it guidelines or office order, or office memorandum

Notification

purpose of issue

To provide an option for an assured pension scheme for Central Government employees under the National Pension System

Most Important Details

The scheme offers an assured pension of 50% of the average basic pay of the last 12 months for those with 25 years of qualifying service, with proportionate payouts for shorter service (minimum 10 years). It includes a lump sum payment at superannuation, family pension at 60% of the assured payout, and dearness relief. The scheme is effective from April 1, 2025.

eligibility

Central Government employees covered under the National Pension System with a minimum of 10 years of qualifying service.

All the Most Important details in the circular, its purpose it serves

The Unified Pension Scheme (UPS) provides an assured pension, family pension, and lump sum payment for Central Government employees. It is a fund-based system requiring employee and government contributions. It is effective from April 1, 2025.