NEWS
28 JANUARY 2025
Daily Current Affairs based on ‘The Hindu’ newspaper as per the syllabus of UPSC Civil Services Examination (Prelims and Mains) Compiled by Mrs. Bilquees Khatri.
GS III: ECONOMY
Unified Pension Scheme (Ups)
Context & Background:
- Notified by the Finance Ministry, effective April 1, 2025.
- Aims to provide assured pension benefits for government employees under the National Pension System (NPS).
- NPS, introduced in 2004, lacked a guaranteed pension, unlike the earlier system offering 50% of the last drawn salary.
- UPS restores the assured 50% pension for Union government employees.
Key Features:
- Optional Transition: Current and future central government employees under NPS can opt for UPS, but the decision is irreversible.
- Assured Pension: 50% of the average basic pay of the last 12 months before retirement for employees with 25+ years of service.
- Minimum Pension: ₹10,000 per month for employees with at least 10 years of service.
- Family Pension: 60% of pension provided to dependents in case of the employee’s death.
- Dearness Relief: Pension adjusted periodically for inflation.
- Superannuation Benefits: Lump sum payout + gratuity upon retirement.
- Voluntary Retirement: Employees retiring after 25 years of service receive pension at superannuation age.