Unified Pension Scheme: Centre Aims for Quick Implementation of National Pension Scheme Reforms
Unified Pension Scheme Push by the Centre
The Unified Pension Scheme is rapidly gaining traction as the Centre is committed to implementing it swiftly. Announced on August 24, notifications are set to occur by mid-October, aligning with plans for a full rollout by April 1, 2025.
Key Objectives of the Unified Pension Scheme
This Unified Pension Scheme aims to provide fundamental benefits to central government employees, ensuring a minimum monthly pension and protection against inflation. An estimated 23 lakh employees can choose between the UPS and the current National Pension Scheme.
- 50% of last drawn pay as a monthly benefit
- Inflation-adjusted dearness allowance increases
- Guaranteed minimum pension of Rs 10,000 for ten years of service
- Provision for 60% family pension
Implementation Steps and Stakeholder Involvement
Key stakeholders include the Pension Fund Regulatory and Development Authority (PFRDA) and the Department of Expenditure. Necessary regulatory frameworks and investment plans are being formed to support this large-scale rollout.
Additionally, the National Security Depository Ltd (NSDL) is assessing requirements for operationalization. Overall, the ambition is to widen the UPS beneficiaries significantly beyond the central government employees, potentially reaching up to 90 lakh individuals if state governments take part.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.