Prime Minister Narendra Modi on Saturday said the Unified Pension Scheme ensures dignity and financial security to government employees and reflects the government’s commitment to their welfare and secure future.
Modi made the remarks after the Union Cabinet approved a guaranteed 50 per cent pension of its salary to 23 lakh government employees joining the service under the National Pension System (NPS).
The National Pension System is applicable to government employees who joined service after April 1, 2004. This pension scheme provides benefits based on contributions instead of the defined benefit applicable to pre-NPS employees.
Prime Minister Modi wrote on ‘X’, “We are proud of all the government employees who work hard for the progress of the country. The Unified Pension Scheme (UPS) ensures dignity and financial security of these employees. This step reflects our government’s commitment to their welfare and secure future.”
Announcing the Cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnav said government employees under the Unified Pension Scheme (UPS) will now be entitled to 50 per cent of the average basic salary drawn in the last 12 months before retirement as pension.
He said that the minimum service period for getting 50 per cent of salary as pension should be 25 years. He said, however, pension will be given proportionately for minimum service period up to 10 years. NPS account holders can now opt for UPS, which will give assured pension from the beginning of the next financial year.
