The features of Unified pension scheme introduced by Union government of India

The Government of India has introduced the Unified Pension Scheme (UPS) to provide assured retirement benefits to central government employees. Key features of the scheme include:

Assured Pension: Employees with a minimum of 25 years of service will receive a pension amounting to 50% of their average basic pay drawn over the last 12 months prior to retirement. For those with service between 10 and 25 years, the pension will be proportionate to their length of service. 

Assured Minimum Pension: The scheme guarantees a minimum monthly pension of ₹10,000 for employees who have completed at least 10 years of service upon superannuation. 

Family Pension: In the event of a pensioner's death, the spouse will receive 60% of the pension that the retiree was receiving. 

Government Contribution: The government will contribute 18.5% of the employee's basic salary plus dearness allowance to the pension fund, while employees will contribute 10% of their basic salary plus dearness allowance. 

Lump Sum Payment: Upon retirement, employees will receive a lump sum payment along with their gratuity. This payment will be equal to one-tenth of the monthly emoluments (pay plus dearness allowance) as of the superannuation date for every six months of completed service. Importantly, this does not reduce the amount of the assured pension. 

The Unified Pension Scheme is set to be effective from April 1, 2025, and aims to enhance the financial security of government employees post-retirement.