CA Suresh Kumar Agarwal
Under the new scheme, staff will receive 50 percent of the average basic pay of their last 12 months before retirement as a pension; provided they have served for a minimum of 25 years. For those between 10 and 25 years of service, the pension will be proportionate to their years of service.
UPS will also offer a minimum pension of Rs 10,000 per month for retirees who have rendered at least 10 years of service. In the event of the death of the employee while in service, his family will get 60 percent of the amount of pension the employee was drawing at the time of his death, thus making them financially secure.
This new pension scheme will be implemented from April 1, 2025, for which the government has set apart Rs 6,250 crore in the first year itself. More importantly, the UPS would apply to those Central Government employees who retired under the NPS since 2004, giving them a new retirement option.
Given the fact that costs of living are increasing, pensions under UPS shall be inflation-indexed. This would be by Dearness Relief based on the All India Consumer Price Index for Industrial Workers.
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