Beginning on April 1, 2025, the Modi administration plans to implement a new pension plan for central government workers. The goal of the Integrated Pension Scheme (UPS), an alternative to the National Pension System (NPS), is to give workers more financial stability once they retire.
Who is Eligible for the New Pension Scheme?
The following will have access to the Integrated Pension Scheme:
- Employees of the central government are already registered with NPS.
- Employees who decide to use the NPS structure’s new integrated pension scheme.
- Retired workers who were once covered by NPS, with PPF interest rates and arrears paid.
Key Benefits of the Integrated Pension Scheme
- If they have worked for at least 25 years, retired employees will get a pension equal to 50% of their average basic wage from the 12 months before retirement.
- The share of the government will rise from 14% to 18.5%.
- The contribution made by employees won’t alter.
- 60% of the pension will be paid to the employee’s family in the event of their untimely death.
- Workers who retire with at least ten years of service would be eligible for a minimum monthly pension of ₹10,000.
Who Can Opt for This Scheme?
- NPS and VRS employees have the option to switch to UPS.
- Once selected, the selection will not be changed.
- An estimated 23 lakh central government employees are anticipated to gain from the program.
- More than 90 lakh government workers now covered by NPS may also gain if state governments adopt it.
The power of qualified workers to transfer to the Integrated Pension Scheme inside the NPS framework has been verified by the Finance Ministry. Central staff should weigh their alternatives and decide on their post-retirement financial stability as the deadline draws near.
