New Delhi: In a significant move to enhance post-retirement benefits, the Central Government has rolled out additional pension perks for retired employees covered under the National Pension System (NPS) through the newly introduced Unified Pension Scheme (UPS). The scheme officially came into effect on April 1, 2025, and aims to provide a guaranteed monthly pension to qualifying retirees.
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Eligibility Criteria for UPS Benefits
According to the Press Information Bureau (PIB), the benefits are available to:
- Central Government NPS subscribers
- With a minimum of 10 years of qualifying service
- Who retired on or before March 31, 2025
The last date to claim these benefits is June 30, 2025.
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Three Key Benefits Under Unified Pension Scheme
Qualified retirees can claim three distinct UPS benefits:
1. One-Time Lump Sum Payment
Retirees will receive one-tenth of their last drawn basic pay plus dearness allowance for every completed six months of qualifying service.
2. Monthly Pension Top-Up
If the monthly annuity from NPS falls below the guaranteed pension level under UPS, the government will top up the pension. The top-up is calculated as:
UPS admissible pension (including dearness relief) minus NPS annuity payout.
3. Arrears With Interest
Retirees will receive arrears on missed payments, with simple interest calculated using the prevailing Public Provident Fund (PPF) rates.
Benefits for Deceased Subscribers’ Spouses
In case of a deceased NPS retiree, the legally wedded spouse is entitled to claim the UPS benefits, ensuring financial support for dependent family members.
Guaranteed Pension for Long-Term Service
Retirees with 25 years or more of service will receive a fixed pension equivalent to 50% of the average basic pay of the last 12 months. This addresses concerns regarding the unpredictable nature of NPS payouts and introduces stability in retirement income.
Who Qualifies for the Scheme?
The scheme is inclusive of multiple retirement scenarios such as:
- Superannuation
- Voluntary Retirement
- Compulsory Retirement under FR 56(j)
Conclusion: A Major Boost for Retiree Financial Security
The Unified Pension Scheme marks a significant shift in the Indian pension landscape by combining the flexibility of NPS with the predictability of a fixed pension structure. With the deadline to apply approaching fast, eligible retirees are urged to review their status and apply before June 30, 2025.
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