Centre approves Unified Pension Scheme, employees to get assured minimum fund before...

In a significant decision impacting lakhs of employees, the BJP-led central government on Saturday approved the Unified Pension Scheme (UPS) which provides for Assured Pension and Assured Family Pension. Briefing the media after a meeting of the union cabinet, Information and Broadcasting Minister Ashwini Vaishnaw said about 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS).

The cabinet meeting was chaired by Prime Minister Narendra Modi.

The employees will have the choice to continue with the National Pension Scheme or UPS.

"Today the Union Cabinet has approved Unified Pension Scheme (UPS) for government employees providing for the assured pension...50 per cent assured pension is the first pillar of the scheme...second pillar will be assured family pension...About 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS)...There will be an option for the employees to opt between NPS and UPS," he said.

Referring to Assured Pension, he said it will be 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years.

It will be proportionate for a shorter service period upto a minimum of 10 years of service.

The Assured Family Pension would be calculated at the rate of 60 per cent of pension of the employee immediately before her or his demise.

Assured Minimum Pension will be Rs 10,000 per month on superannuation after minimum 10 years of service.

(Except for the headline, this story has not been edited by DNA staff and is published from ANI)