Centre Revises UPS: ₹10,000 Minimum Pension and Gratuity Benefits Like Old Pension Scheme
In a significant move, all Central government employees covered under the Unified Pension Scheme (UPS) will now be eligible for retirement and death gratuity benefits, similar to those under the Old Pension Scheme (OPS).
New Delhi: In a significant move, all Central government employees covered under the Unified Pension Scheme (UPS) will now be eligible for retirement and death gratuity benefits, similar to those under the Old Pension Scheme (OPS). This announcement was made by Union Minister of State for Personnel Dr. Jitendra Singh on Wednesday.
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Long-Pending Demand Finally Fulfilled
The inclusion of death-cum-retirement gratuity in UPS has been a long-standing demand of Central government employees. This policy change is expected to encourage more employees currently covered under the National Pension System (NPS) to switch to UPS for broader financial security.
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UPS Offers Guaranteed Pension with a Hybrid Model
The Unified Pension Scheme (UPS) was officially notified on January 24, 2025, by the Department of Financial Services. It combines the guaranteed pension benefits of OPS with the contribution-based structure of NPS.
Key features of the UPS include:
- 50% of average basic salary (last 12 months) as monthly pension for employees with 25+ years of service
- Minimum pension of ₹10,000/month for those with at least 10 years of service
- 60% family pension in case of death of the pensioner
- Employee contribution: 10% of basic salary + DA
- Government contribution: 18.5% (higher than 14% under NPS)
DoPPW Issues Clarity Through Two Key Orders
The Department of Pensions and Pensioners’ Welfare (DoPPW) issued two important orders:
- Gratuity Inclusion: UPS-covered employees will now be eligible for retirement and death gratuity, under the CCS (Payment of Gratuity under NPS) Rules, 2021.
- OPS Option on Death: In case of death or disability, the deceased employee’s family may receive OPS-like benefits. However, the last option exercised by the employee before death will be considered final and non-revisable.
UPS Pensioners Now Eligible for ₹25 Lakh Gratuity
DoPPW Secretary V Srinivas confirmed that UPS pensioners will now be eligible for gratuity up to ₹25 lakh, terming the order “progressive” and aimed at clearing doubts and concerns among the workforce.
NPS Employees Federation Welcomes the Move
Manjeet Singh Patel, President of the All India NPS Employees Federation, welcomed the change. He stated that this decision would eliminate confusion regarding UPS and boost employee confidence in switching over to the scheme.
