New Pension Rules Alert! Fixed Pension Guarantee for Govt Employees

New Delhi (The Uttam Hindu): The government has issued a notification for the new Unified Pension Scheme (UPS) aimed at providing fixed pension security to millions of central government employees. Under this scheme, employees who complete 25 years of service will receive a pension guarantee of up to 50% of their last 12 months' average salary. Additionally, employees who have served more than 10 years will receive a minimum monthly pension of ₹10,000. In case of an employee's death, 60% of the last pension amount will be provided to their family members as a pension.

It is important to note that in 2004, the government discontinued the Old Pension Scheme (OPS) and introduced the National Pension System (NPS). Initially, it was applicable only to government employees, but in 2009, it was extended to all citizens. Now, the Unified Pension Scheme has been introduced under the same framework.

Under UPS, a fixed amount is deducted from employees' salaries and invested in a market-based scheme. The scheme will come into effect nationwide from April 1.