Updated 12:42 IST, January 26th 2025
UPS Update: Unified Pension Scheme To Be Under National Pension Scheme From This Date - Details
The features of UPS were drawn up after discussions were held under the joint consultative body.

The finance ministry on Saturday, January 25th notified that the Unified Pension Scheme (UPS) will be an an option under the National Pension System (NPS) for central government employees. The scheme will be effective from April 1, 2025. This new scheme will guarantee retirement benefits for employees.
Finance Ministry Issues A Statement
“The Unified Pension Scheme shall apply to Central Government employees who are covered under the National Pension System and who choose this option under the National Pension System,” the finance ministry said in a statement.
“Pension Fund Regulatory and Development Authority (PFRDA) may issue regulations for operationalizing the UPS. The effective date for operationalization of the Unified Pension Scheme shall be April 1, 2025,” the statement added.
New UPSC Features
Under the new Unified Pension Scheme (UPS), once central government employees have completed 25 years of service, they will offer 50 per cent of the average basic pay drawn during the 12 months prior to retirement.
Employees who are between 10 and 25 years of service will receive a pension on a proportionate basis.
The features of UPS were drawn up after discussions were held under the joint consultative body. The body serves as a mediation platform to resolve differences between government bodies and central government.
The new pension policy will impact nearly 2.3 million central government employees as of August 24, 2024.
The policy unveiled a framework that guarantees 50 per cent of basic pay as a monthly pension, responding to requests from Central government staff unions who sought guaranteed retirement benefits.
The government had set up a high-level committee, headed by cabinet secretary-designate T.V. Somanathan, the then-finance secretary, in April 2023 to rework the existing pension system, known as the New Pension Scheme (NPS).
This move followed widespread grievances that had escalated into a political issue, with some states, where opposition parties were in power, reverting to the old pension scheme (OPS), which had strained the government’s financial resources.
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Published 12:37 IST, January 26th 2025