Unified Pension Scheme FAQs: Key features, benefits, and all your questions answered

1. What is the Unified Pension Scheme?

   - The UPS ensures retirees receive a guaranteed and predetermined sum regularly after retirement.
   - It will be implemented from April 1, 2025
   - The pension amount is fixed and indexed to inflation through dearness allowance .

2. How is the pension calculated under UPS?

   - If you work for 25 years or more, you'll receive 50% of your average pay for the preceding 12 months as a pension .
   - This pension amount is adjusted for inflation.

3. Contributions:

   - Employee contributions remain the same.
   - The government increases its contribution from 14% to 18.5%

4. Retirement Benefits:

   - At retirement, you'll receive a lump sum payment at superannuation along with gratuity.
   - This payment is 1/10th of your monthly emoluments (pay + DA) for every six months of completed service .

5. Minimum Pension:

   - Retirees under UPS receive 50% of their average basic pay over the last 12 months before retirement for a minimum of 25 years of qualifying service.
   - For shorter service periods, pensions are proportionate, with a minimum of 10 years of service.

6. Inflation-Linked Pensions:

   - Pensions under UPS are indexed to inflation.
   - Dearness Relief is based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).

7. Family Provisions:

   - UPS includes provisions for family pensions upon a pensioner's death .

In summary, the UPS provides a balanced approach, ensuring financial security for government employees during retirement. It bridges the gap between OPS and NPS, offering stability and predictability . If you have any more questions, feel free to ask!