Big Pension Scheme Update by Modi Government to Impact Central Government Staff

New Delhi (The Uttam Hindu) : The Finance Ministry said on Friday that Central Government NPS account holders or their spouses who retire after completing a minimum of 10 years of service on or before March 31, 2025 can claim additional benefits under the Unified Pension Scheme (UPS).

Retired employees opting for UPS will get a lump sum payment of one-tenth of the last basic salary and dearness allowance thereon for every completed six months of service. Also, the monthly top-up amount under NPS is calculated by deducting the pension amount received under NPS from the admissible UPS payment and Dearness Relief (DR). It said that retired employees will also be paid simple interest as per the applicable PPF rates. The last date for claiming by such employees or their spouses is June 30, 2025. Let us tell you that the Finance Ministry had notified the Unified Pension Scheme (UPS) in January, which promises a pension equal to 50 per cent of the average basic salary received in the last 12 months before retirement.

UPS will be applicable to central government employees who are covered under the National Pension System and who opt for it. According to the notification, the rate of fully assured payment will be 50 per cent of the average basic pay of the 12 months immediately preceding retirement. This gave 23 lakh government employees the option to choose between UPS and NPS. NPS was implemented on January 1, 2004.