Will state employees also get the benefit of the new pension scheme UPS? Know here

Ashwini Vaishnaw On UPS: The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Unified Pension Scheme (UPS) on Saturday (24 August). Under this, approval has been given to ensure 50 percent of the salary as pension for central employees. Union Information and Broadcasting Minister Ashwini Vaishnav gave this information.

He said, “Today the Union Cabinet has approved the Unified Pension Scheme (UPS) for government employees providing assured pension. 50% assured pension is the first pillar of this scheme. The second pillar will be assured family pension. About 23 lakh central government employees will benefit from the Unified Pension Scheme (UPS). Employees will have the option to choose between NPS and UPS.”

Three pillars of UPS

Ashwini Vaishnav said that the benefit of 50% assured pension scheme is for government employees who have completed a minimum of 25 years of service. They will get 50 percent of the average basic salary of the last 12 months before retirement as pension.

The Union Minister further said that under the family pension scheme, the family of the pensioner will get 60 percent of the pension received at the time of his death. At the same time, for government employees who have served for a minimum of 10 years, they will get a pension of Rs 10,000 per month after retirement.

As per the current pension scheme, employees contribute 10 per cent while the Central government contributes 14 per cent, which will be increased to 18 per cent with UPS.

Will state employees also get its benefit?

Union Minister Ashwini Vaishnav said that if the state government wants to implement UPS, it can be implemented. He said that state governments will also be given the option to choose the Integrated Pension Scheme. If the state governments opt for UPS, the number of beneficiaries will increase to around 90 lakh. This scheme will be implemented from April 1, 2025. Central government employees will also be given the option to choose from NPS to UPS.

Also read: UPS: Modi government’s big gift to government employees! Unified Pension Scheme approved, understand what is UPS