The unified pension scheme is an innovative initiative made by the Pension Fund Regulatory and Development Authority (PFRDA) under the National Pension System (NPS). Its main goal is to provide guaranteed pension to the central government employees with a combination of features of Old Pension Scheme and NPS. Let’s check the rules, eligibility, pay out and More about the Unified pension scheme.

Unified pension scheme:

Rules and Eligibility

Who Can Join?

Central government employees who are already under NPS.

Newly recruited employees joining after April 1, 2025.

Retired employees who were earlier under NPS.

Legally wedded spouses of deceased retirees who were eligible for UPS.

Application Timeline:

Existing employees must apply for the Unified pension scheme between April 1 and June 30, 2025.

Newly recruited employees must decide to apply within 30 days of joining.

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Contribution:

Government takes 10% of their basic pay and dearness allowance to the government as the contribution from the employee for their future income. The government also adds up a significant amount to match the contribution of employees.

Pay Out Details

Assured Payout:

The assured pay out under the Unified pension scheme is calculated as 50% of the average basic pay of the last 12 months in service before retirement.

Minimum guaranteed payout is expected to be ₹10,000 per month for those with at least 10 years of service.

Investment Options:

Employees who applied for UPS can choose between 100% bond investments or partial equity options (up to 50%).

Subscribers can change their pension fund once a year and investment choice twice a year.

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