New Delhi, June 23
The Ministry of Finance has decided to extend the cut-off date for exercising the option for Unified Pension Scheme (UPS) by three months -- upto September 30, 2025, for eligible existing employees, past retirees, and the legally wedded spouses of deceased past retirees.
This move followed representations that were received from various stakeholders, requesting an extension of the cut-off date.
The Ministry of Finance notified the Unified Pension Scheme (UPS) for eligible Central Government employees on January 24, 2025.
To operationalise this framework, the Pension Fund Regulatory and Development Authority (PFRDA) notified the PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025 on March 19, 2025.
As per the regulations, eligible existing employees, past retirees, and the legally wedded spouses of deceased past retirees were given a period of three months, up to June 30, 2025, to exercise their option under the scheme.
Under the UPS, there will be a provision of a fixed and assured pension, unlike the NPS which does not promise a fixed pension amount.
For those employees who have completed 25 years or more of service, UPS provides for a pension amount of 50 per cent of their basic pay earned during the last 12 months preceding retirement. Employees with a minimum of 10 years of service will be eligible for pension but it will be adjusted proportionally with the number of years of service, with a minimum amount of Rs 10,000 a month.
The retirement benefits also include an assured family pension, equal to 60 per cent of the employee's basic pay. This pension will be given in the event of an employee dying prematurely.
Inflation linked indexation benefit will also be applied on assured pension, assured family pension, and assured minimum pension.
UPS also provides for gratuity or a lump-sum amount on superannuation. The gratuity amount will be calculated as per the old formulae, as one tenth of the monthly emolument, pay plus dearness allowance as on retirement date and calculated on the basis of every six months of service.
The UPS also guarantees 6 per cent of the pension to be immediately transferred to the employee's family as family pension, similar to the benefits offered by OPS.
In April 2023, a committee led by then finance secretary T V Somanathan, had recommended for the Unified Pension scheme, which was later approved by the Union cabinet in August 2024.
— ANI
Reader Comments
Good decision by the government to extend the deadline. Many retired employees were struggling with paperwork and needed more time. The fixed pension amount under UPS is much better than NPS uncertainty. Hope they simplify the application process further.
Finally some relief for government employees! The Rs.10,000 minimum pension is a blessing for those with shorter service periods. But I wonder - will this put extra burden on taxpayers? The government should ensure fiscal discipline while implementing this scheme.
The inflation-linked indexation is the best part! 🎉 My father retired last year and was worried about rising prices eating into his pension. This scheme gives much-needed security to elderly citizens. Hope private sector employees get similar benefits someday.
As a widow of a government employee, I appreciate the family pension provision. The 60% of basic pay will help many families like mine survive after losing the breadwinner. The extension gives us more time to understand all clauses properly.
While the scheme looks good on paper, implementation will be key. Many retired employees live in remote areas with limited access to government offices. Hope they create special camps and online portals to make enrollment easier for everyone.
The 6% immediate transfer to family is a thoughtful provision. But what about employees who don't have traditional family structures? The scheme should consider including nominees beyond just legally wedded spouses to be more inclusive.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.