Unified Pension Scheme

The Union Cabinet has approved the Unified Pension Scheme (UPS), effective from April 1, 2025, ensuring assured pensions for government employees. Replacing the current National Pension System (NPS), the scheme offers an assured pension of 50% of the employee’s average basic pay over the last 12 months before retirement, provided they have a minimum of 25 years of service. For shorter service periods, the pension will be proportionately reduced, with a minimum qualifying period of 10 years. State governments may also adopt the UPS.