The Unified Pension Scheme (UPS) extends its benefits to past retirees of the National Pension Scheme (NPS), ensuring they receive an assured pension. Past retirees under NPS, who have already superannuated, will be covered under UPS, which includes receiving arrears for the period they were under NPS. These arrears will be calculated with interest at Public Provident Fund (PPF) rates, providing a financial adjustment for the time before UPS was implemented. This move aims to provide financial security and equity for those who retired under the previous pension system.

The UPS promises a pension equivalent to 50% of the average basic pay drawn over the last 12 months before retirement for those with at least 25 years of service, with proportionate benefits for lesser service periods. Additionally, it guarantees a minimum pension of ₹10,000 per month for retirees with a minimum of 10 years of service. For the families of deceased pensioners, there’s an assured family pension set at 60% of the pension the employee was receiving.

The scheme’s implementation, set for April 1, 2025, reflects a significant policy shift towards ensuring a more predictable and inflation-indexed pension for government employees, past and present. Employees, both existing and future, have the option to choose between continuing with NPS or opting for UPS, with their choice being final.

This flexibility and the interest on arrears at PPF rates underscore the government’s commitment to enhancing the retirement benefits for its employees, aligning with broader economic policies aimed at welfare and security in retirement.