It is based on the recommendations of T. V. Somanathan Committee (2023), will be effective from April 1, 2025.
- The UPS proposes to amalgamate advantages of both Old Pension Scheme (OPS) and New Pension Scheme (NPS).
Key Features of Unified Pension Scheme (UPS)
- Assured Pension: 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years.
- It will be proportionate for a lesser service period (minimum service of 10 years).
- Under OPS, however, 50% of last drawn salary is considered in place of average of 12 months, whereas NPS being a Market-linked scheme, has no assured pension.
- Assured Family Pension: On demise, pension amounting 60% of employee’s pension before demise.
- Assured minimum pension: ₹10,000/month (minimum service 10 years)
- Increased from the ₹9,000/month available under OPS and NPS.
- Inflation Indexation: In form of Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW), similar to service employees. (Similar to OPS)
- Lumpsum payment on superannuation: In addition to gratuity, 1/10th of monthly salary+ Dearness Allowance for every completed six months of service.
- It will not reduce the quantum of assured pension.