Chandigarh, March 21 — The Unified Pension Scheme (UPS), offering central government employees an assured pension of 50% of their average basic pay drawn over the last 12 months before superannuation, will come into effect from April 1, 2025.
The scheme will apply to both existing central government employees under the National Pension System (NPS) as of that date and new recruits joining after April 2025.
Enrolment and claim forms will be available online on the Protean CRA website (https://npscra.nsdl.co.in) from April 1. Employees will also have the option to submit physical forms.
The scheme guarantees 50% of the average basic pay over the last 12 months before retirement, provided the employee has a minimum of 25 years of qualifying service. However, it excludes employees dismissed, removed, or those who resign.
The UPS gives 23 lakh central government employees the choice between it and the NPS, which came into effect on January 1, 2004.
Unlike the old pension scheme (OPS), which guaranteed 50% of the last drawn basic pay, the UPS is contributory.
Employees will contribute 10% of their basic salary and dearness allowance, while the central government will add 18.5%. The eventual payout will be linked to market returns, with the corpus mainly invested in government debt.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the UPS on August 24, 2024, replacing the OPS for employees hired before January 2004.
