The Unified Pension Scheme (UPS) offers additional benefits to retired central government employees who had enrolled under the National Pension System (NPS). The benefits can be availed by the government employees who retired on or before March 31, 2025, after completing at least 10 years of eligible service.
The additional retirement benefits can also be availed by the spouses of the retired government employees along with the existing NPS benefits, the finance ministry said in a statement on Friday.
These benefits can be availed by eligible retirees and their spouses by June 30, 2025. The move is aimed at providing a more complete retirement package by augmenting the current NPS benefits.
The Unified Pension Scheme, managed by the Pension Fund Regulatory and Development Authority (PFRDA), was launched on April 1, 2025, to extend retirement benefits to the central government employees who were NPS subscribers.
A retired employee who chooses UPS would get a single lump-sum payment equivalent to one-tenth of their most recent basic pay and dearness allowance (DA) for every valid six months of service.
The NPS representative annuity amount is subtracted from the allowable UPS payout and Dearness Relief (DR) to determine the monthly top-up amount. This amount must be paid on the day of retirement under Fundamental Rules 56(j), superannuation, or voluntary retirement, whichever occurs first. Simple interest will be accrued on the arrears for the aforementioned benefits for the past service period, computed at the applicable Public Provident Fund (PPF) rates.
It is recommended that eligible retirees apply for their benefits online or in person at the Drawing and Disbursing Office (DDO) by submitting forms. The NPS website provides access to the online application.
The Unified Pension Scheme offers a better financial safety net by supplementing the annuity payouts, now provided by NPS. The launch of the programme is an important step in improving pension security for former central government servants, guaranteeing them a steady and predictable income.
Thus, retirees will have a steady additional source of income that will assist their financial security after retirement. Benefit distribution is transparent and equitable owing to this computation technique. This program sets a new benchmark for retirement benefits and represents a turning point in the development of pension plans for public sector workers.
. Read more on Personal Finance by NDTV Profit.Central government employees who resigned under the NPS after 10 years of service are now eligible to receive additional pension benefits under the UPS. Read MorePersonal Finance
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